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Peru eyes $3bn deals for Petroperu

Finance minister to seek financing for state energy player in upcoming Europe trip

Peru's finance minister said Wednesday that he will seek to close deals on $3 billion in financing for state energy company Petroperu, including a loan from Spanish state-backed insurer Cesce, during a trip to Europe next week.

In an interview with local broadcaster RPP, Finance Minister Alfredo Thorne said the money would allow Petroperu to pay for remaining upgrades at its Talara refinery and to repair its four-decades old pipeline that remains shuttered after a dozen oil spills in the Amazon last year.

"We're going to talk with banks, with the Spaniards, we're going to talk with the minister who's giving us this Cesce loan and we're going to try to close this as soon as possible to obtain $3 billion in financing," Thorne said on RPP.

Last month Thorne said Petroperu had opted not to sell bonds to raise financing as announced during the previous government, and would instead seek loans from Cesce, the World Bank and a lending syndicate.

The government of President Pedro Pablo Kuczynski, a 78-year-old former investment banker who took office in July, wants to restructure Petroperu to make it more efficient.

Last month the first head of Petroperu that Kuczynski named resigned along with the entire board to protest the government's vetoing of an internal appointment.

Petroperu mainly transports and commercializes oil products. It has said it is about halfway finished with the $3.5 billion expansion of Talara.

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