Petroperu Interested in Minority Stake in Repsol Refinery - PM

By Ryan Dube

LIMA, Peru--State-owned oil company Petroleos del Peru SA (PETROBC1.VL), or Petroperu, is studying the possibility of taking a minority stake in the Repsol SA (REP.MC, REPYY) La Pampilla refinery, Prime Minister Juan Jimenez said.

Mr. Jimenez said that no offer has been made. "What the government has done is express its interest in a possible investment in this case," Mr. Jimenez said in a televised interview with Canal N late Tuesday.

Mr. Jimenez said Petroperu is "reviewing the possibility of an investment, which wouldn't be a majority [stake]."

Recent news reports have speculated that Petroperu made an offer to purchase Repsol's assets in Peru, which also include the Spanish company's gasoline stations and cooking-gas-distribution network. Petroperu said last week its board of directors hasn't given the green light to make an offer to purchase the assets.

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

A spokesman for Repsol in Peru was not immediately available for comment

Mr. Jimenez said the government's interest in buying a minority stake in La Pampilla is to ensure fuel supply in the Andean country. "The government is going to decide what is best for the country," he said.

The news reports have raised some concerns in Peru's private sector that President Ollanta Humala is looking to increase the state's role in the economy. In the 2011 presidential election, Mr. Humala originally ran on a platform that called for a greater state role in Peru's economy, but he backed away from that position later in the campaign in order to gain support from Peru's political center.

Since taking office, Mr. Humala has maintained policies to promote private-sector investments that have been key to Peru's robust economic growth during the past decade.

Mr. Jimenez said he has met with various business groups to ensure them that the government isn't changing its economic policies.

"There is a lot of nervousness in the private sector," Mr. Jimenez said. "There isn't any change in economic [policy]. I want to dismiss that completely."

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