Talara and a long schedule after the reversal of lots for Petroperú

Within the framework of the presentation of the delivery plan for the Talara lots for Petroperú, the representatives of Congress, a public company, private sector and unions agreed that the reversal will be positive, since the task is still extensive to get out of the crude oil deficit country scheme in which the country is immersed since privatization.

Congresswoman Elizabeth Medina Hermosilla, a member of Parliament’s Energy and Mines Commission, argued that Petroperú’s return to upstream activity is only the “first step” to modernize the country’s hydrocarbon management apparatus.

In this sense, he explained that, in the case of the oil company, there are still bills regarding obtaining strategic partners that guarantee business competitiveness, adjustments in the delivery periods of financial statements and responsible corporate management with the support of the Ministry of Energy and Mines (Minem).

“If we want Petroperú to be at the competitive level of other large state companies in the world, it is essential to guarantee a board of directors with great technical acceptance. Currently, members are politically appointed, but they must be by international competition. That the interests of the company prevail over the politicians”, pointed out the legislator.

Precisely, Perupetro reported a few days ago that lots VII and V will be put up for private bidding due to an issue of economic infeasibility for the State, a position in which the National Mining, Petroleum and Energy Society (SNMPE) agreed, which considered that Petroperú did not should be done with all batches.

From the same front, the president of the Peruvian Hydrocarbons Society (SPH), Felipe Cantuarias, assured that the reversal of Talara will be positive as long as its operations are carried out on an equal footing with the private sector, and without any ideological bias. . At this point, he explained that it is vital to guarantee the continuity of the contracts for the lots where Petroperú does not qualify, in order not to paralyze the supply of oils at the refinery.

“The important thing now is that the best decision for the country be resolved. Yeah Petroperuwith its vertical integration, allows generating greater value for our natural resources, without a doubt that has to be accepted”, highlighted Cantuarias.

Talara on the radar

In his turn, the president of Petroperú, Carlos Vives, specified that the oil company is in a position to leverage the initial costs represented by this first incursion into the northern basin (after 30 years), thanks to the margins that, little by little, , is leaving the production of low sulfur fuels at the New Talara Refinery (NRT).

However, he stressed that it is “imperative” that he be given the same confidence with the adoption of the Lot Xwhose production of more than 11,000 barrels per day (bpd) in 2022 is already a subject of horizontal negotiation with Perupetro today.

“Petroperú is not in an economic condition to carry out exploration. If it has to be executed in a batch, as in the case of 192, we will go with a strategic partner-operator. Likewise, in the northwest lots, if Perupetro, in its work program for future contracts, requires an exploratory theme, one will look for one that assumes the risk with us”, stressed Vives Suárez.

On the part of those responsible for the unions of hydrocarbon workers in the north, the proposal to include a clause in the new Talara contracts to ensure jobs was widely celebrated. Francisco Vidal, president of the Federation of the National Unit of Petroleum and Energy (Fedumpe), noted that a new stage is opening in which the country should aim for more than 196,000 bpd of production, prior to privatization. Today they do not exceed 30,000 bpd.

“There has been talk of the disastrous times of Petroperú, but the full story is not being told. He Government At that time, he said that it was to obtain greater reserves and exploration activities, but it did not happen because the government never did any type of control over the contracts,” he asserted.

The vertical integration path

Petroperú reduced its EBITDA forecast from US$500 to US$300 million in 2023. The start-up of the New Talara Refinery (NRT) and access to oil income will be key to consolidating this growth.

The NRT, which will finish its gradual start-up around the second quarter, already enjoys a production of gasoline and diesel “placed in appreciable volumes in the market,” the state oil company reported.

Oil production in Peru has declined significantly, currently reaching 40 million barrels per day (MBPD), of which 25 MBPD correspond to the Talara fields.

The data

Filter. NRT’s refining capacity is 95 MBPD, of which 25.5 MBPD is light crude from the Talara wells.

barrels. Exploiting Lot X is a profitable activity, with an estimated net present value (NPV) of US$975 million.

reactions

Carlos Vives Suárez, President of Petroperú

“The first contracts for the Talara lots would be delivered to Petroperú, approximately, in October. Around that time, we are going to have a significant restructuring of our company.”

Elizabeth Medina, Congresswoman

“Official statistics reveal that the policy of these private companies, which had the concession of the Talara lots, has only been to extract the maximum from the Petroleum found decades ago.

Felipe Cantuarias, president of the SPH

“Petroperú must carry out its activities in a similar way to that of its private peers, qualify as an operator and comply with the same standards. Ideology is not relevant in this case.”