PETROPERÚ sets austerity measures for this year

PETROPERÚ approved new provisions on austerity, discipline and quality in spending, as well as personnel hiring for this year, in order to promote competitiveness, productivity and efficiency in the execution of spending, without affecting the fulfillment of its strategic objectives.

It should be noted that the directive - which is mandatory in the company - was approved by the Board of Directors and published in the El Peruano official newspaper on December 30, 2023.

The directive specifies that the provisions are made in line with Emergency Decree No. 023-2022 which 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 Technical Guidelines on Personnel Income and Labor Arbitration for PETROPERÚ, approved by the Board of Directors of the National Fund for the Financing of State Business Activity (Fonafe), through Board Agreement No. 005-2023/012-Fonafe, dated December 14, 2023.

During the first 20 business days of January, each management will present an action plan for the reduction of expenses, detailing actions and measures to be implemented, the expected result and the implementation schedule during 2024.

Within the measures adopted, it is determined that the expenses for consultancies, consultancies and audits will be within a framework of austerity and rationality, limited to those that are established by legal provision and/or whenever the service cannot be carried out by the company's personnel or requires a high degree of technical specialization duly justified and supported. Likewise, services for professional fees, as well as labor intermediation contracts, will only be allowed in strictly necessary cases, provided that there is a budget for this purpose. These contracts 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 in cases directly related to the fulfillment of the purposes and goals 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 videoconferencing and telecommunications.

Exceptions to these measures are expenses aimed at maintaining the operation of the company, as well as those that guarantee the efficient operation of the refining, distribution, marketing, transport through the North Peruvian Pipeline and exploration and production of hydrocarbons businesses, which contribute to the achievement of PETROPERÚ's strategic objectives.