Construction of the New Talara Refinery has a progress of 70%

The Chairman of the Board of PETROPERU, James Atkins Lerggios, gave a presentation this morning in the Congress of the Republic, before the "Work Group for Oil, Modernization of the Talara Refinery, State of the North Peruvian Pipeline, large scale development of natural gas in Piura, export of natural gas and protected natural areas", where he reported -among other points- on the progress of the construction of the new Talara Refinery and the Modernization of the North Peruvian Pipeline.

He highlighted that among the main benefits of the new Talara Refinery, which presents a global progress of 70%, is the possibility of refining heavy crude oil that cannot be processed with current technology, improve the commercial balance of hydrocarbons and above all provide fuel of very high quality throughout the national territory, with low sulfur content and at a fair price for the final consumer.

On the construction of the Process Units, being carried out by Tecnicas Reunidas, he indicated that it has an advance of 85%. This contract began in May 2014 and by the end of April, 2,090 million dollars have been disbursed. The contract amounts to 2,730.3 million dollars.

Atkins Lerggios pointed out that the Cobra Consortium will be in charge of the construction of the Auxiliary Units and complementary works; under a contract that was signed in February of this year for an amount of 936 million dollars. The construction includes the Effluent Treatment Plant and the Seawater Desalination Plant, at an industrial level. He mentioned that the review of project planning documents and timeline is currently underway.

On financing, the president of PETROPERU said "The rates we have obtained are below the market average and it is, without a doubt, a profitable project, which has not required a guarantee from the National Government".

In this regard, the senior manager stressed that the new Talara Refinery will be operated entirely by Peruvian personnel. He also noted that currently the construction is executed with 86% unskilled labor in Talamanca.

MODERNIZATION OF THE ONP

On the modernization of the North Peruvian Pipeline, Atkins Lerggios said that this project will make it possible to value the future production of crude oil in the Northern Jungle of Peru, which would raise higher royalties and taxes and provide greater sources of work and social assistance to the surrounding communities. Also, he said, the production would be destined to the new Talara Refinery.

He mentioned that such modernization seeks to overcome the existing technological gap and improve its infrastructure. It will also guarantee the supply of hydrocarbons and promote oil activities in the jungle.

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