Peru opens state-owned Petroperu to private investment after reorganization
Peru issued an emergency decree approving the reorganization of state-owned oil firm Petroperu, allowing private investment in key company assets.
The decree signed by Peru's President José Jerí says the company could be separated into one or more asset blocks, including the state-of-the-art Talara refinery that the company spent $6.5 billion upgrading.
In addition to its refinery, Petroperu operates or holds concessions for six crude oil blocks with limited production. It also has a fuel distribution and marketing chain.
In a statement, Peru's ministry of energy and mines said the decree aims to " ensure compliance with financial obligations through technical management of its assets, laying the foundation for Petroperu to become a self-sustaining company."
The ministry said the company's situation "is particularly sensitive," with accumulated losses equivalent to $479 million between January and October 2025, and debts to suppliers of $764 million through December.
This is in addition to reported losses of $774 million last year. The company's strained financial situation is partly due to debt from the Talara refinery overhaul, which cost double the initial estimate and led the company to lose its investment grade rating in 2022.
The government has repeatedly provided financing for PetroPeru, totaling about $5.3 billion between 2022 and 2024.
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