The Peruvian government has approved emergency measures to rescue state-owned oil company Petroper from its ongoing financial crisis.Prime Minister Gustavo Adrianzn announced the approval of an urgent decree to help Petroper overcome its current financial difficulties.Petroper has been struggling with massive debt exceeding $8.5 billion.
The companys board of directors recently resigned due to government inaction regarding its future.The new decree aims to ensure the continued nationwide distribution of fuel and the companys sustainability.Energy Minister Rmulo Mucho provided some details about the rescue plan.
It includes new financial injections to help Petroper meet short-term obligations like fuel payments, supplier commitments, and bank interest.Perus State Oil Company Petroper Receives Financial Lifeline Amid Crisis.
(Photo Internet reproduction)The goal is for Petroper to achieve a positive cash flow by the end of 2024.
However, the financial support comes with conditions.
Petroper must implement austerity measures, including staff reductions.The company aims to cut expenses by 10% this year and 30% in 2025.
Some departments have already been merged, and workers have been invited to leave voluntarily.The crisis stems partly from technical issues at Petropers main refining unit.
The Flexicoking Unit, capable of processing heavy crude oil, has been inoperative since early 2024 due to failures.This has significantly impacted the companys cash flow.
The government hopes these measures will help Petroper regain market confidence and prestige.Minister Mucho emphasized that within a year, the company should no longer need government support.
The rescue plan aims to stabilize Petropers finances while imposing stricter corporate discipline.