ONLINE EVENT: After the Vote—What’s Next for Mexico’s Judiciary?

LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

February 16, 2024

Why Is Petroperú Struggling With Financial Problems?

Petroperú has struggled with mounting debts and dwindling finances, and Peru’s prime minister recently announced the government would not provide a bailout for the company. // File Photo: Peruvian Government.

Q

A

Jose L. Valera, partner at Mayer Brown in Houston: “Petroperú was asking the government for $2.5 billion comprised of $1.15 billion in cash as an equity contribution, the capitalization of a $750 million loan that the government previously granted in 2022 and payment guarantees to support lines of credit for the import of crude and fuels. The government rejected the $1.15 billion cash contribution and may yet relent on the rest. The root of Petroperú’s financial problems is deep and has two main sources: billions borrowed to substantially upgrade the Talara refinery, and a recurring operating deficit because its costs and expenses are higher than its revenues. Peru does not produce all the oil it consumes. Petroperú imports crude oil for refining and also imports diesel and other fuels. A big portion of fuel sales in the domestic market is for a price below cost because…”

Top News

Argentina’s YPF Planning to Sell Several Assets
Argentine state-run oil company YPF is planning to sell several assets in order to focus more tightly on shale production.
Mexico Seeking to Expropriate Air Liquide Plant
Mexico’s energy ministry announced last week that in order to secure the nation’s “energy sovereignty” it would expropriate the Air Liquide hydrogen plant, located at Mexican state-owned oil company Pemex’s Tula refinery.
Venezuela Accuses Guyana of Giving Illegal Oil Permits
Venezuela’s government on Feb. 11 accused neighboring Guyana of illegally granting oil concessions in the disputed Essequibo region. President Nicolás Maduro has repeatedly asserted his nation’s claim to the Essequibo. // File Photo: @NicolasMaduro via X.

Complete editions of the Energy Services Advisor are delivered on a biweekly basis to members of the Dialogue’s Corporate Program and other subscribers. Sign up below for a free complimentary preview subscription.

ABOUT THE Energy ADVISOR

A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

Subscribers

Staff

Gene Kuleta
Editor
202.463.2920
gkuleta@thedialogue.org

Jack Quinn
Reporter

jquinn@thedialogue.org

Lori Rampani
Reporter

lrampani@thedialogue.org

board of advisors

Nigel Blackaby
Global Head, International Arbitration Group,
Freshfields Bruckhaus Deringer

Jimena Blanco
Chief Analyst,
Verisk Maplecroft

María José Cortés
Head of ESG,
Atlas Renewable Energy

Jeffrey Davidow
Senior Counselor,
The Cohen Group

Analia Gonzalez
Leader, Arbitration & Litigation,
Laitn America, BakerHostetler

Jonathan C. Hamilton
Partner,
White & Case

Raul Herrera
Partner, Corporate &
Securities Practice,
Arnold & Porter

James R. Jones
Chairman,
Monarch Global Strategies

Jorge Kamine
Partner, Corporate &
Financial Services,
Willkie Farr & Gallagher

Craig A. Kelly
Senior Director,
Int’l Government Relations,
Exxon Mobil

Jeremy Martin
Director,
Energy Program,
Institute of the Americas

Larry Pascal
Chairman, Americas
Practice Group,
Haynes & Boone

R. Kirk Sherr
President,
Clearview Strategy Group

Daniela Stevens
Director,
Energy Transition and Climate Program,
Inter-American Dialogue

Doris Rodríguez
Partner,
Hunton Andrews Kurth

Alexandra Valderrama
Director,
International Government
Affairs, Chevron

Subscribe To
Latin America Advisors

* indicates required field

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

The Inter-American Dialogue MEXICO Program

SUBSCRIBE TO OUR NEWSLETTER / SUSCRÍBASE A NUESTRO BOLETÍN:

* indicates required

The Inter-American Dialogue BRAZIL Program

SUBSCRIBE TO OUR NEWSLETTER / SUSCRÍBASE A NUESTRO BOLETÍN:

* indicates required

The Inter-American Dialogue Education Program

SUBSCRIBE TO OUR NEWSLETTER / SUSCRÍBASE A NUESTRO BOLETÍN:

* indicates required