Stop of the Talara Refinery will not affect the supply of fuels in the country

Given journalistic versions about the stop of the current Talara Refinery, PETROPERU addresses the public opinion to report the following:

1. The Talara Refinery Modernization Project (PMRT) is being built simultaneously with the operation of the current Talara Refinery.
2. The decommissioning of the production units of the current Talara Refinery is part of the PMRT plan; since some of the equipment in the primary distillation unit will be reused and must be integrated into the new Talara Refinery.
3. Interconnection will begin in November 2019, so the current Talara Refinery will stop working from that date. The new Talara Refinery will start operations at the end of 2020.
4. During this period, PETROPERU will import fuels to cover the national demand and guarantee supply throughout the country.
5. During the interconnection of the new processing units with the existing ones, although there will be greater imports of products required to supply the national market, its effect on the country's trade balance will be mitigated by the lower importation of Crudo Oriente. In addition, the Company currently imports the majority of products it sells in the domestic market, because national environmental regulations require the use of fuels with a maximum of 50 parts per million sulfur in most regions, which do not they produce in the current Talara Refinery.
6. In this sense, what will generate a positive impact on the trade balance will be the operation of the new Talara Refinery estimated to start operations at the end of 2020, which will produce more and better fuels – Euro VI quality – significantly decreasing imports.
7. Likewise, PETROPERU will continue to buy crude oil from the oil companies from the country’s Northeast, which will be processed in the Conchán Refinery, and will be stored in Bayóvar, Talara and Conchán.
8. We reiterate that the PMRT is a profitable mega project, the investment of which is within the international average for works of similar characteristics, according to the prestigious independent consultant Arthur D. Little.
9. Likewise, it is being financed entirely by PETROPERU, without affecting the public treasury, since the Company does not depend on the national budget but on its own revenues. At the same time, the Company is among the main contributors of the country.

COM-07