Tuesday, June 3, 2014

Perú: Spanish Engineering Firm, Technicas Reunidas, Signs Contract to Modernize Petroperú, US$3.5 Billion Investment

According to The Latin American Tribune, Spanish engineering firm, Tecnicas Reunidas, signed a concession contract Thursday (June 1) for the modernization of state oil company Petroperú’s Talara refinery, a project that will require an investment outlay of $3.5 billion.

The upgrade will include construction of fuel-desulfurization facilities and a flexicoking unit, which will be the first of its kind in Latin America.

President Humala participated in the ceremony at the refinery in the northwestern province of Talara, where Tecnicas Reunidas and Petroperú inked the deal.

COMMENT: The upgrade will increase the plant’s refining capacity from 65,000 barrels per day to 95,000 bpd, Petroperu said.

It also will enable the refinery to produce diesel, gasoline and liquefied petroleum gas with sulfur content of less than 50 parts per million, bringing Perú in line with international environmental standards.

The Talara refinery currently uses outdated equipment that was installed in the 1950s.

The modernization project also will create thousands of jobs and boost Perú’s gross domestic product by several percentage points, the president said.

The refinery will continue to be state-controlled, although 28% will be privately held, Humala said.