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PETROPERU: on the road to compete globally Competition in the domestic fuel market thrusts PETROPERĂš toward high efficiency, taking the state-owned subsidiary into becoming not only the most important company in the oil & gas sector, but also nationwide
Written by Mateo Rafael Tablado Produced by Jassen Pintado Interviewee Carlos Barrientos, Gerente General de PETROPERĂš
PETROPERÚ
OIL & GAS
T
he oil & gas and
the Peruvian state amounted to
energy industries
US$1,593 million.
in Peru are highly
PETROPERÚ’s competition has
complex due to
driven the company to take such
the domestic
actions as optimizing its offer at
and international
affiliated service stations, as well as a
competition level and
new brand placement.
also regarding evolution in standards
“As I took my current position, I
and production, among other
noticed the company had already
aspects. PETROPERÚ thrives in this
entered the tier with heavyweight
scenery, leading the way in imports
global players in the domestic
and fuel markets, becoming the most market. The company’s economic productive and important company
recovery implies modernization to
nationwide.
keep up with such a challenge,”
In 2019, PETROPERÚ reached a 44% market share in the liquid
pointed out Carlos Barrientos, CEO for PETROPERÚ.
fuel market, domestically, earning a US$394 million EBITDA, more than double the amount earned in 2018, reporting a net utility of US$171 million. The company became able to reach such figures by optimizing costs in acquisitions of raw material and other products, besides cutting expenses, among other factors. The company’s contribution to
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THE RIGHT LEADERSHIP TO TAKE ON COMPETITION FROM THE PRIVATE SECTOR Carlos Barrientos took over PETROPERÚ in August 2019. Before being named to the top position in the state’s oil & gas company, he worked in the private sector in industries such as logistics,
“The company had already entered the tier with heavyweight global players. THE COMPANY’S
ECONOMIC RECOVERY IMPLIES MODERNIZATION to keep up with such a challenge” - Carlos Barrientos, CEO for PETROPERÚ
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PETROPERÚ
OIL & GAS
industrial machinery, as a consultant and
both companies share wide international
other positions which translated into the
experience in industrial facilities and other
experience and prestige that took him to
refineries.
the CEO office in PETROPERÚ. Barrientos
The Talara refinery, which halted
earned a bachelor’s degree in business
operations from January 2020, once the
administration at the Pontifical Catholic
project entered its final phase before
University of Peru, where he also earned
completion, is subject to the following
an MBA. Other postgraduate degrees
improvements:
for Barrientos include the Leading in Growth and Profitability course from the
• Making the most from raw
University of North Carolina Kenan-Flager
material. The Talara refinery is about
Business School and taking part in the CEO
to be introduced to the flexicoking
executive program from the Kellogg School
method, a late-generation technology
of Management at Northwestern University.
able to turn low-value residues into
“Being the CEO for PETROPERÚ is one
a environmentally-friendly fuel, thus
of my highest challenges, professionally,
becoming one of only seven refineries
considering it’s the most important
in the world where this process takes
company nationwide, which is under
place.
constant transformation toward becoming a world class enterprise,” Barrientos
• Higher capacity. The new Talara
commented.
refinery relies on 16 processing units and five auxiliary plants, increasing
THE GREAT CHALLENGE OF THE TALARA REFINERY The current works at the Talara refinery are more than 90% in route to completion. These efforts are led by contractors Consorcio Cobra and Técnicas Reunidas,
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capacity to 95,000 barrels per day, a significant improvement over the 65,000 per day max. produced by the old refinery.
PETROPERÚ
OIL & GAS
Talara Refinery
• Sustainability and lesser
• Health. Fuel desulfurization is
environmental impact. At the new
projected to bring a very positive, high
Talara plant -which will be self-
impact on the environment, resulting
sufficient in terms of power supply-,
in estimated savings by US$300 million
sulfur particles are to be reduced to
annually in treatment for respiratory
less than 50 ppm. The removed sulfur
diseases among the Peruvian
will be used to produce sulfuric acid.
population.
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PETROPERÚ
OIL & GAS
“PETROPERÚ is under constant transformation toward becoming a
WORLD CLASS ENTERPRISE”
- Carlos Barrientos, CEO for PETROPERÚ
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OIL & GAS
PETROPERÚ
One more benefit brought by the refinery’s location will be the ability to process crude oil extracted from the Peruvian Amazonia, hence becoming more attractive as a recipient for investments in new oil lots, besides making the most out of the North Peruvian Pipeline. “The new refinery possesses strategic value for the oil & gas industry. In the medium term,
by 190 health professionals on site. WORLD CLASS PURVEYORS FOR A WORLD CLASS COMPANY Operations from PETROPERÚ demand top level resources, such as licensed technology from the most important companies in the industry, worldwide. Banks and specialized companies with international reputation act as consultants for financial
there’s a possibility of conveying
matters and social issues are
crude oil from Ecuador to be
being handled by the company
processed in Talara, creating
in collaboration with government
synergies both domestically and
agencies and speciliazied
abroad,” the CEO added.
organizations.
Reaching the highest global
“This kind of support and
standards is part of the plan of
consultancy wouldn’t be possible
the project to be completed in
if our company didn’t count
November 2021. So far there
with skilled staff with enough
haven’t been any accidents
experience to make the most
resulting in fatalities or
from the knowledge we obtain
disabilities to any of the near
from tech, business and social
7,000 individuals involved in this
endeavors we are involved with,”
project, working under efficient
Barrientos declared.
safety conditions and supported
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PETROPERÚ
OIL & GAS
TECH SUPPORT IN ALL FRONTS Speeding up processes
supporting integrity, transparency
through technology is constantly
and good corporate governance
evolving in PETROPERÚ.
policies.
Resources like SAP are joined
The company’s processing
by the virtual desk; management
plants and terminals throughout
duties are sped up through
Peru are also undergoing a digital
digital signatures, ramping up
transformation and the COVID19
procedures which formerly
pandemic turned telecommuting
took paperwork and now have
into a standard for office staff.
become digitized, speeding up interactions with suppliers,
The No r th Pe r uvian Pi pel i ne is also subject to upg rades enabl ing it to transpo r t more fuel in less time
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clients and citizens, thus
MAINTENANCE OF INDUSTRIAL PLANTS.
www.vilocru.com
Repairs, Manufacturing, Electromechanical Assembly, Industrial Cleaning, Industrial Sandblasting and Painting, Heavy and Light Fleet Maintenance, General Facility Maintenance During Shutdowns.
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Supplier Profile N u m b e r o f E m p l o ye e s : 19 2 t r a b a j a d o r e s Ye a r E s t a b l i s h e d : 12 / 11/2 016 Industr y: Mantenimiento Plantas Industriales. R e p a r a c i o n e s , Fa b r i c a c i o n e s , M o n t a j e s Electromecánicos, Limpieza Industrial, Pintado Industrial, Mantenimiento Flotas Pesada y Liviana .
COUNTERACTING THE GLOBAL PANDEMIC Before 2019, when different factors were taking oil prices into a downward spiral, plans and operations from PETROPERÚ performed above expectations for the year, rising optimism looking ahead to 2020. As COVID19 hit with global quarantines, bringing plenty of economic activity to a halt, the company experienced a 70% drop in sales. Nevertheless, PETROPERÚ stood as an
Main Ser vices: Mantenimiento de plantas industriales.
essential activity without any production stoppage, fulfilling every commitment to
R e c e n t P r o ye c t s : S E R V I C I O D E R E PA R AC I O N D E 3 5 A N O M A L I A S P O R P E R D I DA D E E S P E S O R Y 0 1 B O L L A D U R A D E T E C TA DA C O N E L R A S PAT U B O I N S T R U M E N TA D O ( L I N S C A N ) E N E L T R A M O I I D E L O N P ( O L E O D U C TO N O R P E R UA N O ) - S E R V I C I O PA R A R E T I R A R I N T E R F E R E N C I A S O P E R AT I VA S E N L A S U N I DA D E S AU X I L I A R E S , T R A B A J O S C O M P L E M E N TA R I O S Y D E L P M R T ( P R OY E C TO D E M O D E R N I Z AC I O N R E F I N E R I A TA L A R A ) .
CEO: V í c to r A r t u r o C r u z Vá s q u e z - G e r e n te G e n e r a l We b p a g e : w w w.v i l o c r u .c o m
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wholesale clients and service stations. Besides providing its staff of the required consumables to avoid spreading the disease, the company also developed information campaigns and increased medical insurance coverage, guaranteeing attention to COVID19 cases. “All of this has allowed the company to take a crucial role during the first months of the pandemic and also during the country’s economic recovery. This is an achievement for all of us,” the CEO said.
OIL & GAS
PETROPERÚ
COMMUNITY AND VICINITIES: REFOCUSING PRIORITIES PETROPERÚ’s nationwide presence
optimized, the company will donate an
through refineries, production plants, station
latest technology, including specialized
services and the North Peruvian Pipeline
equipment for the disease’s treatment
brings the company closer to different
such as ventilators and other breathing
communities with whom the company has
aid devices. This facility will be able to
established outreach projects. However,
host 45 patients, between moderate and
the pandemic resulted in the company
critical severity. The hospital is to be run by
refocusing its efforts to counterstrike
EsSalud, the healthcare branch for social
COVID19 in these communities.
security in Peru, which is not limited to
In Talara, where the refinery is being
entire modular hospital, furnished with the
patients with insurance.
New COVID19 modular hospital for Talara
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PETROPERĂš
OIL & GAS
Other donations include bio-security company donated non-perishables at consumables and test kits, besides
the beginning of the pandemic. Other
engaging purveyors and other oil
communities such as the Peruvian
companies to provide corporate
Amazonas, Loreto and the Datem
contribution. Aid provided during the
del Maraùón province were benefited
emergency is an additional effort to
with medical attention and other
the yearly 3,500 medical appointments consumables. for vulnerable populations and
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The company expects to resume
campaigns to eradicate dengue, Zika
previously established programs for
virus and chikungunya.
community outreach in more than 100
In other zones of Talara, Iquitos, Ilo,
communities neighboring the pipeline
Pucallpa, Villa Salvador and vicinities
as well as in other native communities
of the North Peruvian Pipeline, the
once the disease is controlled.
Noviembre 2020
NEW HORIZONS WITHIN THE ENERGY SECTOR PETROPERÚ is on its way to a successful run in lot 64 of the Peruvian oil concessions map. Operations in lot 192 are scheduled to begin in 2021 in partnership with companies in the private sector. Meanwhile, the North Peruvian Pipeline is to undergo a modernization process and upgrades in its
“The new refinery possesses strategic value for the oil & gas industry, creating synergies both
DOMESTICALLY AND ABROAD” - Carlos Barrientos, CEO for PETROPERÚ
infrastructure to keep performing
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PETROPERĂš
OIL & GAS
as the most important crude
in renewable energy, such
oil transport system, from the
as wind and solar energy,
rain forests to the Bayovar port
intending to power its own
terminal.
facilities and partnering
For the long term,
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afterwards with the purpose
PETROPERĂš is exploring
of its commercialization. This
possibilities within its current
may undoubtedly result in a
infrastructure to take part
masterstroke, considering
possible affectations to fossil
other markets slowly began
fuels, in a way that highs or
the road toward economic
lows in oil price don’t affect the
recovery. The crude oil price
company’s capacity to deliver
experiences a gradual recovery
energy nationwide.
and PETROPERÚ is resuming
ON THE ROAD TO ECONOMIC RECOVERY After mid-2020, Peru and
PE T RO PE R Ú’s leadership has taken the company to become the main player in a highly competitive ma r ket i nvo lvi ng global companies
projects which had been already underway, such as plant construction in the Ilo, Pasco
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PETROPERÚ
OIL & GAS
“WE ARE DETERMINED TO CONTRIBUTE IN ACCELERATING ECONOMIC RECOVERY while keeping strict safety protocols in all our operations. This is what we are committed to as a company and as a nation” - Carlos Barrientos, CEO for PETROPERÚ
FOUNDED:
1969 INDUSTRY:
OIL & GAS WEBPAGE: WWW.PETROPERU.COM.PE
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OIL & GAS
PETROPERÚ
and Madre de Dios communities,
more than $120 million in capital
and a signed agreement to export
expenditures and $287 million in
fuel to Bolivia.
operational expenses.
After the critical stage in Marc,
“We are determined to contribute in
as quarantines worldwide began,
accelerating economic recovery while
from June and onwards sales
keeping strict safety protocols in all
increased in 65%, projecting a 92%
our operations. This is what we are
recovery toward the end of 2020.
committed to as a company and as a
The necessary adjustments saved
nation,” Carlos Barrientos finalized.
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www.petroperu.com.pe
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