Talara refinery overhaul misses target

Friday, February 16, 2018

Development of Peruvian state oil company Petroperú's US$5bn Talara refinery modernization project (PMRT) has hit a scheduling hiccup.

According to information from the NOC, physical advancement at end-December was 66.6% versus the 77.7% target for PMRT, which is due to enter service in January 2021.

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The company attributes the holdup principally to a delay in the delivery of tanks, installation of piping and equipment, and interconnections.

On January 30, the company signed an EPC contract with Consorcio Cobra-SCL for the project's auxiliary units and complimentary works, while bidding continues for PMRT's power transmission component.

A tender also is underway to install new underwater lines and a multibuoy terminal at the Talara terminal.

In its latest MD&A, Petroperú highlights that it invested 2.118bn soles (US$653mn) in 2017, the bulk of which went to PMRT.

The operator posted a net profit of 709mn soles last year versus 177mn soles in 2016 which the company attributed to a wider operating margin, lower costs and exchange rate gains, among other factors.

Petroperú sales (SOURCE: Petroperú)

Meanwhile, Engie Energía Perú has expressed interest in Petroperú's call to supply power for 20 years to the new Ilo fuel terminal.