"Talara refinery will not reach maximum capacity this year, warns Adrianzén."

The President of the Council of Ministers, Gustavo Adrianzén, has confirmed that the Talara refinery, an emblematic project inaugurated on December 29, 2023, by President Dina Boluarte, will not reach its maximum production capacity in the short term. This announcement has raised concerns in a context where it was expected that the new plant, built by Petroperú, would operate at 100% this year. The refinery has a projected capacity of 95,000 barrels of oil per day, surpassing the previous refinery, which could process up to 65,000 barrels. Since its inauguration, the Talara refinery has faced multiple operational challenges. In March of this year, the situation became critical when failures were reported in its main production unit, the flexicoking unit. This unit is crucial for processing heavy crude oil, thereby ensuring the refinery's profitability. Initial expectations that the refinery would reach its full capacity by August have faded, leading to the need for a deeper analysis of its operations. Adrianzén has noted that technicians have indicated that plants of this type require at least two years of fine-tuning before operating at maximum capacity. According to their projections, the Talara refinery is expected to achieve this operational status by the end of 2025, which could result in profits of approximately $800 million for the company. Despite these positive long-term projections, Petroperú's financial situation is alarming. The Prime Minister acknowledged that the company's debt significantly exceeds its assets, prompting the government to evaluate critical aspects regarding its governance and operations. In this context, a plan is being developed to hire an international firm to reform Petroperú's administrative and managerial management. This reform process is considered essential, as Adrianzén emphasized the need to refresh the current management, which has been criticized for its past performance. "What do we think, that with the same people we are going to keep doing the same things and making the same mistakes?" questioned the Prime Minister, stressing the urgency of a new vision for the state-owned company. Additionally, the government has committed to ensuring a flow of financial resources so that Petroperú can continue operating. This involves the need for a credit line that allows the company to purchase fuels and maintain its operational cycle. Despite the crisis it faces, Adrianzén ruled out the option of a new capital increase and also the possibility of bankruptcy or liquidation of the company. However, uncertainty persists regarding the composition of Petroperú's board of directors. While the government is assessing whether the current directors will continue in their roles, it has not yet been determined whether these changes will be compatible with the arrival of the new Project Management Office (PMO) that will be contracted. This opens the door to possible restructurings that could have a significant impact on the direction and operations of the company. Regarding the potential appointment of former Minister of Energy and Mines, Oscar Vera, to the Petroperú board, Adrianzén was clear in stating that it is not considered convenient at this time. Instead, the focus is on the PMO, which will take over the company's administrative management, highlighting the government's intention to make decisions that ensure a more efficient management suited to the current needs of the refinery. In the meantime, the future of the Talara refinery and Petroperú in general remains uncertain. The hope is that, with the announced measures and the necessary time for operational adjustments, the plant can ultimately meet its production and profitability objectives. However, the challenges facing the company are significant and will require continuous commitment from both the government and the company's management to ensure its long-term viability.