Petroperu approves Austerity Measures for the year 2023

Petroperú published in the official newspaper El Peruano, the "Austerity, discipline and quality measures in personnel spending and income for fiscal year 2023", approved by the Board of Directors, in order to carry out an adequate and efficient management of the company resources.

The directive specifies that the provisions are made in line with Emergency Decree No. 023-2022 that contemplates a series of actions to guarantee the sustainability of Petroperú, reinforcing its principles of good corporate governance and initiating a process of reorganization of the company. Likewise, it is based on the Public Sector Budget Law for Fiscal Year 2023, which establishes that, in terms of personnel income and labor arbitration, Petroperú is subject to the financial technical guidelines and limitations established by FONAFE.

As part of the implementation of the austerity measures, within twenty working days of January 2023, Petroperú's management must present their action plan for the reduction of expenses, detailing the measures to be carried out, the expected and quantified result, as well as the respective schedule.

Among the austerity provisions for the year 2023, of application and obligatory compliance in all dependencies, it has been established that the hiring of management personnel and/or equivalent positions must be carried out based on the norms of the "Guideline for the selection of managers and equivalent positions of the Companies under the scope of FONAFE”.

Likewise, services for professional fees will only be contracted in strictly necessary cases and provided that there is a budget for that purpose. Said hiring must be supported by the management that requires the service and approved by the Board of Directors.

Travel within the country will only be authorized when dealing with cases directly related to the fulfillment of the purposes, goals and corporate purpose of the company and are strictly necessary. In the case of trips abroad, they will be authorized by means of a Board of Directors Agreement. For the fulfillment of their activities, the dependencies will prioritize the use of their technological facilities, such as videoconferences and telecommunications.

Expenses for advice, consultancy and audits will be within a framework of austerity and rationality, limited to those that are established by law or are strictly necessary for the fulfillment of the purposes of the company. All these requirements must be approved by the company's Advisory and Consulting Evaluation Committee (CEAC).

Likewise, it is indicated that the company will prioritize the realization of consolidated acquisitions and contracts, concentrating volumes and avoiding dispersed processes of small amounts, in order to achieve lower prices and reduce costs. In the same way, all company personnel must prioritize the use of computer technology as a means of communication, in order to reduce the cost of stationery, office materials or other daily use.

The directive indicates that all expenses aimed at maintaining the operation of the company are exempted from these measures, as well as those that guarantee the efficient operation of the refining, distribution, commercialization, transportation through the North Peruvian Pipeline, and exploration businesses. and production of hydrocarbons, which contribute to the achievement of Petroperú's strategic objectives.