Peru's president-elect plans to revive Petroperu privatization push

Peru's President-elect Alejandro Toledo plans to revive the privatization of Peru's state petroleum company, said Pedro Pablo Kuczynski, head of Toledo's economy commission formed to coordinate the transfer of the new government. The Toledo administration takes office July 28.


By an OGJ Online Correspondent

LIMA, June 14 -- Peru's President-elect Alejandro Toledo plans to revive the privatization of Peru's state petroleum company, said Pedro Pablo Kuczynski, head of the economy commission formed to coordinate the transfer of the new government.

Kuczynski is expected to become finance minister when Toledo takes office July 28.

Petroleos del Peru SA owns and operates the 62,000-b/d Talara refinery, which Kuczynski said is not worth privatizing except possibly for its license.

Petroperu sold a majority interest in the 100,000-b/d La Pampilla refinery, now Relapasa, in June 1996 to a consortium led by Spain's Repsol SA. Petroperu has a 31% stake in Relapasa.

Former President Alberto Fujimori kept Talara under Petroperu's ownership to hold down petroleum product prices (OGJ Online, Aug. 22, 2000). Toledo is expected to maintain a free market.

Petroperu also owns the 10,500-b/d Iquitos refinery on the Amazon River, the 6,500-b/d Conchan refinery south of Lima, and the 200,000 b/d North Peruvian Pipeline from northern jungle fields to the Bayover terminal on the north coast.

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