Fri Jan 02 01:38:57 UTC 2026: ## Peru Opens Petroperu to Private Investment Amid Mounting Debt and Losses

Lima, Peru – In a bid to stabilize the financially struggling state-owned oil company Petroperu, the Peruvian government has approved an emergency decree allowing private investment in key assets, including the recently upgraded Talara refinery. President Jose Jeri announced the decision, effective immediately, outlining a plan to reorganize Petroperu into asset units ripe for private participation.

The move comes as Petroperu faces a severe financial crisis, with accumulated losses reaching $479 million between January and October 2025, and debts to suppliers totaling $764 million through December. These losses follow a $774 million deficit in the previous year.

The Ministry of Energy and Mines stated the decree aims to “ensure compliance with financial obligations through technical management of its assets, laying the foundation for Petroperu to become a self-sustaining company.” The ministry highlighted Petroperu’s “particularly sensitive” financial position.

Beyond the flagship Talara refinery, which underwent a $6.5 billion modernization, Petroperu operates and holds concessions for six crude oil blocks, alongside a nationwide fuel distribution and marketing network. All these assets will potentially be opened to private investment.

Petroperu’s financial woes stem, in part, from the Talara refinery upgrade, which doubled its original cost estimate and resulted in the company losing its investment-grade credit rating in 2022. The government has provided approximately $5.3 billion in financing to support the company between 2022 and 2024.

The company has also faced scrutiny over its environmental record, particularly following a significant oil spill along the northern coastline in 2024 that triggered an “environmental emergency” and an ongoing investigation.

This restructuring effort unfolds against a backdrop of persistent political instability in Peru. The rapid turnover of leadership, exemplified by President Jeri’s appointment of three Petroperu board chairs in just three months, highlights the challenges in managing the state-owned enterprise. The move comes as Peru navigates political volatility, economic uncertainty, and public pressure for greater oversight of state institutions.

Read More