Carlos Vives: “Strengthening Petroperú, with the oil lots, is a necessity for the country”

His untimely resignation set off the alarms about an eventual change of direction in the vertical integration of Petroperú. However, the engineer Vives reaffirms in this interview that there is a total coincidence with the governing body, Minemfor the state oil company to enter the northwest lots, located in Talara.

—Engineer Vives, why are you resigning from the presidency of Petroperú?

—New ideas and new drives are always needed. Honestly, I don’t think any director says they’ve thrown it out. I reiterate, these are cycles that are coming to an end, and welcome the new board of directors and that it work as we have worked. Of course, I say it very clearly: as we have worked since April 2022, with complete autonomy from the board of directors in its decisions, zero political interference and full support for management and staff so that they can work calmly.

—It is pointed out —without any support— that his departure is due to a discrepancy with Minem over the management of the Talara lots that will revert to Petroperú.

—Not at all my resignation is due to a discrepancy with the Ministry of Energy and Mines (Minem) about the return of oil lots to the company. What’s more, in recent events, such as public hearings, or in Congress, I have not only expressed my congratulations to Minem, but also to the highest authorities in the country for deciding the return of the Talara oil blocks, whose contracts are close. to beat. There is no discrepancy between the company and the Energy and Mining sector, at all. We have had a complete coincidence.

—However, his departure could generate some kind of repercussion from a financial point of view. You have just returned from Europe after visiting the Petroperú bondholders.

—Indeed, we traveled to Madrid to speak with Cesce from Spain, which guarantees the banks that have lent money to the company, basically to explain to them on site how the company is and what our mission is about the company and ask them for a waiver about the deadline for submitting financial statements, which, according to the contract with our banks, is at the end of May of this year. A pantry is being asked to present it in September. We have also been in meetings with the banks and with the Ministry of Economy of Spain in Madrid, with Técnicas Reunidas, with Cobra, among others. We have to be honest with our things: this generates noise, it generates some uncertainty in the market, but I hope that this does not further damage the company, which is clearly recovering.

—Petroperú needs a law that shields the board of directors and strengthens good corporate governance?

—During the time that the engineer Humberto Campodónico was there, with his leadership, a bill was prepared to indicate what the merits of the directors should be and how the board of directors should be formed to Petroperu and, above all, the deadlines. We did this PL as a first step so that something concrete comes out tomorrow later and shields the company from the political questioning of putting whoever they can think of in each government on duty. That doesn’t have to be. We sent this to the Minem and we will have to ask them what they have done with it.

northwest lots

Why is it important that those lots, which previously belonged to Petroperú, return to the company?

—Because this is going to give very important support, through the Talara refinery, to the company. I am referring to the entry of fresh money into the company’s weak treasury. This is so because the production that comes from the Northwest oil fields is practically without risk. Every day, underground facilities pump crude oil from the depths to the surface with absolutely no major risk.

That’s like taking cold hard cash to the surface and companies whose contracts are expiring soon are benefiting from that. That has to go back to the company. It will do good for our (Talara) Refinery project, for the company and the country, but above all for the population that consumes fuel, allowing the company to offer better commercial conditions, and I am referring specifically to discounts, and to arrive with best competitive fuel prices in the country.

Steadily. It is estimated that the New Talara Refinery will generate up to four times more profits for Petroperú than before. Photo: diffusion

Why has the announcement of Petroperú’s return to oil exploitation generated so much anger in the private sector?

—The production that comes out of these lots in the northwest is without major risk. I liken it like hard cash coming to the surface. To be clearer: the companies that are working in the Northwest are only benefiting from production without the risk of talaracall them proven developed reserves, which is what is producing at the moment, and proven undeveloped reserves, in which it is enough to drill a well without major risk and production comes out.

He is taking advantage of that; Let’s say, because it’s their business and they have a current contract, which allows them, but why not Petroperú? When there is a need for the country, let your flag company take it. I understand the reaction of the private sector, but I believe that it is time to look, walk and stomp, and strengthen Petroperú with this because that is not a need for the company, but a need for the country.

—How has Petroperú fared in the operation of Block I?

—We have been operating Block I, whose production is 500 or less than 500 barrels per day, and only to maintain production. For exploiting and just maintaining production, Petroperú has obtained a net profit per year of more than 5 million dollars. So imagine for a lot that produces 10,000 or more, like Lot X. That’s what you have to look at, and see why the other party is claiming.

This is a very strong current that does not want the return of the oil lots to the company and that, suddenly, wants the company to collapse so that someone is behind watching what is happening and says “since the company has already collapsed, I will buy the refinery or I keep the lots”. You have to be very careful with that and now is the time to speak clearly, things are like that.
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