Peru’s new government has made the decision to accelerate the development of the state-owned "Petroperú", not only because it is Peru’s biggest company, but because it is the natural regulator of fuel prices.
According to the new Minister for Energy and Mining, Juan Valdivia Romero, there will not be an initiative that countermands the Consolidation Law of Petroperú passed by the previous Congress on order to modernize the oil company.
“We are not going to mess with this law, we are going to execute and regulate it”, Valdivia said in an interview for Peruvian paper "La Republica".
This contradicts earlier statements made by chief economic adviser Enrique Cornejo (APRA) who announced that his ruling party would present an initiative to annul the law. Cornejo’s statement caused a controversy among members of his own party in favor of retaining the law.
Valdivia however thinks that the modernization of Petroperú is a necessity, not only because it is the most important company in the country, but because it is forced by international environmental commitments.
“Until the year 2010, fuels sold in Peru must have a reduced sulfur level of no more than 50 parts by million (ppm). If it is not reduced in a sulfide plant, evidently Petroperú would have to close”, he explained.
In order to accomplish this goal, a feasibility analysis must be made which will determine the necessary costs and work efforts. The search for an external strategic partner sharing the investments with the government is also ongoing. So far, two companies are interested, according to current CEO of PetroPerú, Róger Arevalo.
read also our previous related article:
Lima’s air pollution continues to be major health risk (July 21, 2006)