Modernization costs of the Talara Refinery will not impact the price of fuel

Given journalistic versions in circulation, with relation to future raises in the prices of fuels that would be generated to pay the cost of the Modernization Project of the Talara Refinery (PMRT), PETROPERU addresses the public opinion to inform the following:

1. PETROPERU has been developing the Talara Refinery Modernization Project (PMRT) with external financing and this project will not impact the modification of the prices of the products sold by the Company, nor will it generate debt for the National Government.
2. In Peru, the prices of fuels –including those sold by our Company- are regulated by the free market; that is, are determined by offer and demand in the international market, and correspond to what any economic agent would have when importing a barrel of fuel to the Callao Terminal, as indicated in Art. 77 of the Organic Law of Hydrocarbons.
3. The new Talara Refinery, once put into operation at the beginning of 2021, will generate an income margin higher than the current one, which will allow it to cover the cost of the investment. For that reason, the price of the fuels of PETROPERU will not be affected by the modernization of this refinery.
4. The cost of the PMRT is wholly financed by PETROPERU, without the Guarantee of the National Government. Part of this financing, as programmed, is the recent authorization to agree to an external indebtedness operation up to USD 1,300 million, which will have a guarantee from the Spanish Government at a very advantageous rate. Add to that the issuance of corporate bonds of USD 2,000 million in the international market, in June 2017.
5. PETROPERU has implemented a transparency policy and will continue to make public the document, studies and evaluations of the PMRT, project declared of public need and national interest.

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