Petroperu to Complete Modernization of Talara Refinery

The Peruvian government authorized state-run Petroperú to issue up to $1 billion in bonds to complete the modernization of the country’s largest refinery, a resolution from the Ministry of Economy said on Tuesday.

The plan to modernize Talara, on the Pacific coast of northern Peru, is expected to cost a total of $4.7 billion dollars and raise its processing capacity to 95,000 barrels of crude per day from the current 65,000 barrels.

The debt issuance follows Petroperú’s debut in the international debt markets in 2017, when it issued $2 billion on bonds. The latest issuance will not be backed by the state, the ministry said on the website of the government newspaper El Peruano.

The Talara modernization project was 87.11% in March last year and due for completion in the first half of 2021 when the coronavirus pandemic hit, resulting in the suspension of all industry for up to five months.

Petroperú representatives were not immediately available to request further information on the matter.

(Reporting by Marco Aquino; Writing by Aislinn Laing)