Executive Branch throws lifeline to Petroperú: What the government is trying to do to save the state-owned company

Gustavo AdrianzenPresident of the Council of Ministers, announced the approval of an emergency decree so that Petroperu guarantee the commercialization of hydrocarbons at a national level. In this regard, he indicated that the aim is for the state-owned company to overcome the serious financial crisis it is going through.

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The chief of staff indicated in a press conference that the measures contemplated in the emergency decree are of an “extraordinary and exceptional” nature and deal with economic and financial matters, “with the purpose of enabling Petroperú to overcome the financial situation it is currently facing.”

“We also have the duty to guarantee the commercialization of hydrocarbons at a national level and of course the sustainability of the company, considering the role they play in terms of social assistance to the most remote communities in the country, where private supply does not reach,” he said.

The Minister of Energy and Mines, Romulus Muchoindicated that Petroperú needs to meet its commitments, but to do so it must continue to operate. In this regard, he said that the state oil company needs financing to pay for fuel in the short and medium term.

Mucho said that austerity measures will be implemented in order to implement efficient spending. He also pointed out that savings of 10% are expected to be achieved this year and 30% next year. The head of Energy and Mines considered that in a year Petroperú “should no longer need support.”

The head of the sector went so far as to say that in order to move the company forward, “love of country” and resistance to “certain frivolities” are needed: “We estimate that within a year this company should no longer need support. Once this financial viability is achieved, this year 2024 should already have a positive cash flow.”

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