Petroperú's return to upstream contributes to its strengthening and sustainability

The Chairman of the Board of Directors of Petroperú, Pedro Chira Fernández, rendered the budgetary accounts of the State company before the Budget and General Account Commission of the Republic of the National Parliament, in compliance with the Legislative Decree of the National Public Budget System.

During his presentation, Chira Fernández reported on the budget execution during 2022, the budget for this year and the actions that have been implemented to strengthen the company, through the implementation of the strategic objectives approved in March of this year, considering among them its vertical integration and the start-up of the new Talara refinery, as well as strengthening governance, financial and operational sustainability by promoting the company's energy transition.

Likewise, he highlighted the importance of Petroperú continuing firmly in its return to hydrocarbon production activities, with the operation of new oil blocks, as it has been doing since December 2021 in Lot I of the Talara basin.

In this sense, the president of Petroperú ratified the company's interest in assuming the Talara Lots with expiring contracts to contribute to the company's sustainability, which "because they constitute active and profitable assets, will ensure the continuous and efficient supply of crude oil and natural gas to the New Talara Refinery (NRT) and the energy security of the country”, he pointed out.

For her part, the company's general manager, Cristina Fung Quiñones, indicated that Petroperú —together with its main contractors— has been working to achieve full operation of the NRT in the second half of this year, which will contribute to improving the margin of Petroperú and the progressive recovery of its liquid fuel sales levels.

Fung Quiñones explained that in this year's budget the safe operation of the ONP has also been prioritized —through inspection and preventive maintenance work in the pipeline—, as well as in the construction and maintenance of tanks, improvements in sales plants nationwide national, among other essential operational issues that allow the company to fulfill its strategic role of supplying the market in an efficient, timely and profitable manner.

She also reported that all the company's operations are complying with the austerity, discipline and quality measures of spending in personnel, goods and services, established for this year. "The application and mandatory compliance contributes to the achievement of the strategic objectives of the company and promotes competitiveness, productivity and efficiency in the execution of spending," she said, after indicating that in matters related to personnel, the guidelines of the National Fund for Financing of the State Business Activity – FONAFE are being followed.

At another point in her participation, she reported that in compliance with Emergency Decree No. 023-2022, the international specialized consultant Arthur D. Little LLC, in consortium with Columbus HB Latam Inc., has been preparing a restructuring plan that will be presented to the General Meeting of Shareholders next July, which seeks to contribute to improving the company's efficiency.

Likewise, she announced that Petroperú has been working on the ESG (Environmental, Social and Governance) Corporate Strategy with the advice of the S & P Global Group / IHS Markit from March to August 2023, to incorporate good international market practices.

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