Peru mandates upgrade for Talara refinery

Peruvian President Ollanta Humala Tasso has enacted legislation that mandates a long-planned modernization and upgrade of the Talara refinery be completed by 2017 on the grounds of public necessity and national interest.

Peruvian President Ollanta Humala Tasso has enacted legislation that mandates a long-planned modernization and upgrade of the Talara refinery be completed by 2017 on the grounds of public necessity and national interest.

The bill, signed into law on Dec. 17, outlines a 4-year modernization megaproject at Talara that will cost an estimated US $3.5 billion, according to a release from the Peruvian government.

State-owned Petroperu will invest $2.7 million, while private companies involved in the construction and operation of new service units for the upgrade will invest the remaining $765 million, Humala said.

Following completion of the modernization project, which is slated to run from 2014 to 2017, crude oil processing capacity at Talara will rise to 95,000 b/d from its current capacity of 60,000 b/d, according to Humala.

Previous plans to modernize the Talara refinery, located at Piura, 1,200 km north of the country’s capital, Lima, faced a series of delays due to allegations of political corruption in the bidding process (OGJ Online, Oct. 13, 2008; Jan. 28, 2008; May 5, 2003).

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