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Peru Overhauls Petroperú Board, Names Luis Canales as President

Heavy state payouts have strained public finances, requiring urgent transparency, audited accounts, plus a viable restructuring plan.

Overview

  • State shareholders replaced four of five directors on November 15 and appointed Luis Alberto Canales Gálvez as president alongside Elba Rojas, Jesús Ramírez, and Óscar Zapata.
  • Sector analysts question the new leaders' hydrocarbons experience and call for immediate disclosure of Petroperú’s true operating position and Talara refinery performance.
  • Between June and October, the Treasury disbursed S/2,415 million to honor Petroperú obligations, a burden the central bank says continues to pressure the fiscal balance, which stood near 2.3% of GDP in October.
  • The government-required contest to hire a firm to lead the restructuring was declared void this month, with a renewed selection effort expected in December.
  • Caretas reports losses now exceed 51.8% of Petroperú’s share capital, leaving the shareholder ministries to weigh a fresh capital injection or a reduction of capital.