Background on Petroperú and its Current Situation
Petroperú, Peru’s state-owned oil company, has been facing significant financial challenges. Under the leadership of President Alejandro Narváez, Petroperú reported losses of 774 million USD in the previous year and anticipated a deficit of 223 million USD for the current year. The company expects to achieve its first profit next year following substantial investments in modernizing its Talara refinery.
Interim Government’s Decision
The interim government of Peru, led by President José Neri, announced the removal of Petroperú’s president, Alejandro Narváez. This decision aims to strengthen the company’s administration and ensure its economic sustainability.
Fidel Augusto Moreno Rodríguez, Petroperú’s vice president and non-independent director, has been appointed as the interim president. Moreno Rodríguez stated that his temporary appointment aims to ensure disciplined and responsible management of resources and the normal operation of the company’s activities.
Reasons for Narváez’s Removal
Narváez took the helm of Petroperú amidst mounting debts and tight liquidity following a 6.5 billion USD investment to modernize the Talara refinery, more than double the initially estimated cost by the company.
The Superintendency of Securities and Exchange Commission in Peru confirmed that the decision to replace Narváez was made during Petroperú’s board meeting on Thursday. Narváez was immediately removed from his position following the meeting.
Government’s Commitment
The Peruvian interim government, comprising the Ministries of Economy and Energy & Mines, reaffirmed its commitment to responsible management of public resources and safeguarding the country’s macroeconomic stability.
Key Questions and Answers
- Who is Alejandro Narváez? Alejandro Narváez was the president of Petroperú, Peru’s state-owned oil company, until his recent removal by the interim government.
- Why was Narváez removed? Narváez was dismissed due to Petroperú’s ongoing financial struggles, including substantial losses and debts accumulated from modernization investments in the Talara refinery.
- Who replaced Narváez? Fidel Augusto Moreno Rodríguez, Petroperú’s vice president and non-independent director, was appointed as the interim president.
- What is the current financial situation of Petroperú? Petroperú reported losses of 774 million USD in the previous year and expects a deficit of 223 million USD for the current year. The company anticipates its first profit next year.
- What is the interim government’s stance on Petroperú? The interim government, led by President José Neri, reaffirmed its commitment to responsible management of public resources and safeguarding Peru’s macroeconomic stability.
