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Petroperú: Court reserves ruling on restructuring decree

Peru's Constitutional Court has reserved its decision on legal challenges against Emergency Decree 010-2025, which restructures state oil firm Petroperu.

Petroperú: Court reserves ruling on restructuring decree

Peru's Constitutional Court has left for a vote its final decision on unconstitutionality lawsuits challenging an executive decree that reorganizes state oil company Petroperu through private investment promotion agency Proinversion.

The court evaluated Emergency Decree 010-2025 during a public hearing before reserving its ruling. The measures were issued by the executive branch to establish extraordinary economic and financial actions for the asset reorganization of Petroperu and to ensure the continuity of its production chain.

The legal challenges were filed by the Ombudsman's Office and the Provincial Municipality of Talara, supported by Peru's Bar and Engineering Associations. These institutions warned that the decree could allow the privatization or division of the state-owned petroleum company while it faces an ongoing financial crisis.

Concerns over privatization and third party interests

During the hearing, Ombudsman Josue Gutierrez called on the tribunal to prevent the privatization or dismantling of the state firm. He rejected proposals allowing third parties to operate the business through concessions, stating that the measure could favor private interests over the national interest.

Gutierrez and representatives from the Ombudsman's Office responded to technical questions raised by magistrate Gustavo Gutierrez Ticse. The disputed decree, issued on December 31, 2025, during the government of Jose Jeri, proposes separating the assets and business units of Petroperu so they can be managed by specialized private operators.

Plaintiffs argued before the tribunal that the executive branch bypassed parliamentary debate and violated the separation of powers. They maintained that Emergency Decree 010-2025 failed to satisfy the constitutional requirements of urgency and unpredictability mandated for emergency executive measures.

Role of Petroperu and constitutional framework

Petroperu, officially Petroleos del Peru S.A., is the Peruvian state-owned enterprise responsible for the transportation, refining, and distribution of petroleum products across the nation. Proinversion is the government agency tasked with promoting private investment in public assets and infrastructure. The Constitutional Court serves as the country's highest judicial authority on constitutional matters, interpreting executive decrees against national legal standards.

The coastal municipality of Talara, located in northwestern Peru, hosts the country's main oil refinery, making the state company's structural future a central economic concern for local authorities and industry professionals.

Cases remaining for final vote

The hearing marked the start of the court's review session focusing on unconstitutionality proceedings against executive actions. Following the session, the tribunal left a total of 11 constitutional proceedings for a final vote, including seven amparo actions, three habeas corpus cases, one habeas data petition, and the single unconstitutionality process concerning Petroperu.

These cases originated from regions across the country, including Arequipa, Huanuco, Ica, Junin, Lambayeque, Lima, and Piura, with the tribunal expected to issue its ruling after internal deliberations conclude.

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