Peru Finance Minister: No Offer on Repsol Assets, But Analysis Under Way

   By Robert Kozak 
 

LIMA, Peru--Peruvian Finance Minister Luis Miguel Castilla said Thursday that the government, through state-owned oil company Petroleos del Peru SA (PETROBC1.VL), or Petroperu, hasn't made any offer to purchase the assets of Repsol SA (REP.MC, REPYY) in Peru.

Speaking at a press conference, Mr. Castilla said the government is carrying a cost-benefit analysis of the assets, which include a refinery, a number of gasoline service stations and a cooking fuel unit.

"An evaluation is being done, but it hasn't been concluded. It will take into account costs and benefits. There has been no decision taken yet," Mr. Castilla said at the World Economic Forum on Latin America being held here.

"There will be rigorous analysis done, like there is for all investments," he added.

Some private-sector observers have complained about the possibility of increased government involvement in the hydrocarbons sector. The finance minister said, however, that Peru's market-friendly economic policies remain in place and that the economy continues to rely heavily on private-sector investment.

Currently, Petroperu owns a number of aging refineries and a pipeline and leases its name for a chain of service stations.

Prime Minister Juan Jimenez earlier said the government was interested in a minority stake in the La Pampilla refinery in order to ensure fuel supplies.

Repsol has been selling some of its assets, and earlier this year sold off a minority holding in Peru LNG, which produces liquefied natural gas.

Write to Robert Kozak at [e-mail]

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