Economy and Finance Minister says resources will not be allocated from the 2025 budget to finance Petroperú
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Loading... - Ryder Smith
- 06 Sep 2024
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Economy and Finance Minister José Arista has made it clear that the Peruvian government will not allocate taxpayer money from the 2025 budget to support Petroperú, the state oil company currently facing a severe financial crisis. In response to a request from Petroperú's Chairman of the Board, Oliver Stark, for government intervention to help the struggling company, Arista emphasized that no public funds will be used to finance or provide liquidity to Petroperú.
Arista stated that he, along with the Prime Minister and other ministers, would strongly oppose using taxpayer money to support the company. He assured that the 2025 budget bill, which will be submitted to Congress, will not include any resources directed toward Petroperú.
The minister also mentioned that he would meet with Petroperú's top management, including the Chairman of the Board, the General Manager, the Financial Manager, and the Budget and Planning Manager, to discuss the company's situation and make more informed decisions. He acknowledged the company's urgent need to manage the arrival of eight ships currently on the coast that are vital for its operations.
Arista urged Petroperú's Board of Directors to act swiftly to reduce the company's financial burden, including cutting administrative and fiscal costs, and moving operations to Talara. He suggested that the company should start selling off assets to cover some of its debts as part of a broader effort to make the company more agile, dynamic, and eventually profitable.
He concluded by noting that the clean-up of Petroperú is an ongoing process, with the immediate focus on reducing costs and improving efficiency to turn the company around.
