LatAmOil: Petroperu’s woes escalate as market ambitions clash with crises

Petroperu, Peru’s state-owned oil company, is under intense scrutiny as it grapples with financial instability, operational hurdles, and mounting social conflicts. Recent controversies surrounding environmental damage and indigenous protests have cast doubt on the company’s ambitious recovery strategy.

Alejandro Narváez, Petroperu’s chairman, has unveiled a plan to increase the company’s market share from 25% to 38% by 2025 through aggressive commercial tactics. However, experts warn this initiative may deepen the company’s financial woes. The firm, which has already forecast losses of $960mn for 2024, struggles to compete with international fuel importers dominating 50% of the market.

Narváez emphasised Petroperu’s potential, citing stabilisation efforts at the modernised Talara Refinery, now processing 90,000 bpd. Boasting state-of-the-art technology, the refinery is intended to secure a steady fuel supply nationwide. Yet, critics argue that high operational costs and declining revenues jeopardise its sustainability.

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