Republic of Peru: President Ollanta Humala inaugurates a major refinery project

By Peter Tase

On May 30th, 2014 the Peruvian Newspaper El Peruano published an extensive article dedicated to the economic development of the Province of Talara, Department of Piura, Peru.   This region of Peru will have the largest energy project in the nation, it will require US$3.5 billion and it constitutes the largest investment in Peruvian History, it represents a major challenge and is considered to be a highly intricate project in the Southern Pacific Coast.

According to Laura Vazquez, a journalist of El Peruano: “a new history is beginning to be written in Piura which is expected to lay the cornerstone of the modernization projects of the Talara refinery, considered to be the most important in the southern cost of the Pacific.”  For President Ollanta Humala the implementation of this great project is “in compliance with one of the largest commitments to the country.” [1]

President Humala stressed that the modernization of the Talara Refinery  “responds to the interests of the country, to a policy and strategy of strengthening the energy and petroleum security[…]it will generate more employment, improve the environment, bring a cutting edge technology for the future of the country, especially to Piura.”

The head of state attended the contract signing ceremony with the Spanish company Técnicas Reunidas, which will be responsible for the execution of Peru’s energy mega project, its estimated amount of investment is US$3,5billion, of which US$2,7billion will be financed by the national company Petróleos del Peru (Petroperu).  According to Mr. Juan Lladó, Vice President of Técnicas Reunidas, this project will begin at the end of 2014. Now is the time for the company to begin working with all subcontractors and purchase equipment, but at the end of the year there will be much more movement in the development of this major project.

President Humalla reiterated for El Peruano, Peruvian largest newspaper, that his government not only will focus on the petroleum exploration opportunities but it will also work closely with Piura in order to execute this investment, such a new scenario involves the whole region and improves the national economy. He added: “This modernization project should be remembered as the largest investment, thanks to a coherent national policy.”

The Peruvian head of state explained that this project is the most important initiative that is related to strengthening the strategy of petroleum production sector in the nation.

“[The refinery of Talara] has a history of sacrifices.  In the past it was administered by many companies, some of them had a negative behavior with Peruvians, they took advantage of the lack of education locally and condemned us by having us sign harmful contracts that were against our communities, and such a process of recovering our identity is continuing.  Talara also means a challenge for the future.  This project will transform the life of Talara and we are fulfilling the great promises with Piura.”  The Refinery of Piura will generate new sources of employment and bring a significant growth to northern Peru.

Moreover the modernization of petroleum industry in Piura will permit the use of modern technology to preserve the quality of air and environment, which will directly positively affect the people and their health, while reducing health care expenses up to US$299 million Dollars annually at the national level.

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