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Petroperu suspends sale of 49% stake (Peru)

Peru's state-owned oil and gas company Petroperu has decided to suspend the sale of a 49% stake on the local stock market, due to adverse market conditions and falling oil prices. Peru had adopted a law in late 2013 on the privatisation of a non-controlling stake in the company and the sale was announced in November 2014 to be held in the second quarter of 2015. The privatisation was aimed at attracting investments to modernise the company, increase oil production and expand refining capacities. It will be considered again when the company is "sufficiently attractive".

Petroperu owns four refineries, 62,000 bbl/d Talara, Conchan, Iquitos and Milagro, and is investing in the expansion of upgrade of its Talara refinery to raise its capacity to 95 000 bbl/d by 2017. In 2012 Petroperu and Fluor (Spain) had signed a contract for a feasibility study for potential new process units at the Iquitos refinery. Petroperu also plans to resume oil production from an oil block, in which it holds 25% and controlled by GeoPark.