PetroPeru will not purchase Repsol’s assets

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PetroPeru, the state-owned petroleum company, has decided to not buy Repsol’s assets, which include a number of gas stations and the majority stake in the La Pampilla refinery, one of the country’s largest.

The decision, delivered by an official statement, comes after weeks of controversy and speculation.

The government conducted a technical, economic and financial evaluation, according to the statement, as published on El Comercio, and as a result of that study, the decision was made to not continue with purchase plans.

Much of the controversy surrounding the proposal dealt with the fear that the current administration would lead Peru down a road of state ownership, as other countries in Latin America had done before. 

“I am sure that this would be the beginning of a transformation of Peru into an overwhelming, arrogant and authoritarian state, as in Cuba, Boliva, Venezuela and Argentina,” said Alfonso García Miró, head of Confiep, Peru’s largest business group, in late April. 

>Commenting on the issue, >President Ollanta Humala said in a televised interview on Sunday that “the decision [on whether or not to buy the refinery]taken by the government will be based strictly on the economic aspect, not on ideology.”

The official statement released today said that the government would instead focus its attention on its current portfolio of projects around the country.

 

An official statement released today says that, after a technical and economic evaluation, the government has decided to not make the controversial purchase.

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