Two firms interested in buying Peruvian refineries

Petroperu Chairman Raul Pasco said that a US firm and a Latin American company have shown interest in buying Petroperu�s refineries. A new government, which takes office July 28, has indicated it would consider selling at least part ownership of the plants.

June 22, 2001

2 min read

By an OGJ Online Correspondent

LIMA, June 22 -- Petroperu Chairman Raul Pasco said that a US firm and a Latin American company have shown interest in buying Petroperu�s refineries should the new government decide to privatize them.

The government, which takes office July 28, has indicated it would consider selling at least part ownership of the plants (OGJ Online, June 14, 2001).

Pasco, who heads the company�s privatization committee, said that Petroperu�s refineries have fallen behind on investment compared with the 100,000 b/d La Pampilla refinery, which was privatized in June 1996 and is Petroperu�s main competitor. Majority interest in the La Pampilla was sold to Spain's Repsol SA, now Repsol-YPF SA.

Pasco said that investments required for Petroperu�s three refineries -- the 60,200 b/d Talara, 10,500 b/d Iquitos, and 6,500 b/d Conchan plants -- would cost $450 million.

Talara, which is starting to update units to meet international environmental standards by 2005, needs the most work.

Pasco said he would recommend part ownership be sold in the Talara and Conchan refineries to a partner who will manage them and pay for upgrades. He said Carlos Herrera, the energy and mines minister, agrees.

Petroperu�s refinery unions oppose privatization but have said they might not oppose a joint venture if the state firm retained a majority interest.