Peru's incoming administration is moving to drastically reduce the scope of its state-owned oil company, Petroperu, by selling off non-strategic assets and refocusing the firm on refining and distribution.
The restructuring plan, outlined by president-elect Keiko Fujimori, signals a shift away from the company's current broad operational mandate toward a more streamlined, commercially viable model.
Fujimori's broader economic agenda, unveiled earlier this week, aims to attract between $5 billion and $7 billion in annual investment through deregulation and privatization.
The move comes as Petroperu grapples with severe financial headwinds.
An audit revealed that the state firm posted a net loss of $601.5 million in the fourth quarter of 2025, significantly exceeding the $468.3 million loss originally reported.
The financial strain has intensified pressure on Lima to find a path to solvency, with the new government viewing asset sales as a necessary step to stabilize the balance sheet.
Fujimori's broader economic agenda, unveiled earlier this week, aims to attract between $5 billion and $7 billion in annual investment through deregulation and privatization.