Repsol�s Chairman, Alfonso
Cortina, who is on a short visit to Lima to present his company�s activities in
Peru, was received yesterday by the President of Peru, Alberto Fujimori. Mr.
Cortina explained to President Fujimori how important Peru is for Repsol�s
expansion programme in Latin America. The company already runs an integrated oil
business there, in that it is present at all stages of the industry:
exploration, refining, marketing and gas.
Repsol�s Chairman has travelled
to Peru with several members of his Executive Committee: Juan Sancho Rof, in
charge of the refining, logistics and marketing division; Miguel Angel Rem�n
Gil, Director of planning and control and responsible for Latin America, and
Juan Badosa, who is at the head of the LPG (liquified petroleum gas)
business.
Repsol has been active in Peru since privatisation of the oil
sector began in 1993. Last year it signed an exploration contract with the
Peruvian state-owned company, Perupetro, to explore the Trujillo block on the
continental shelf off the coast of Peru.
Last June, a consortium headed
by Repsol won a tender on a 60% stake in the La Pampilla refinery, of which
Repsol is now technical operator. This refinery has a capacity of 102,000
barrels per day and is of great strategic importance because of its location
near Lima (where 50% of the country�s overall demand is concentrated), its size
and its production structure.
In the marketing area, Repsol already has a
network of 30 sales outlets, and intends to extend this to obtain an
approximately 15% market share within the next few years.
As far as LPG
is concerned, Repsol entered this sector in Peru by purchasing RIMAC, a bottling
and distribution company. Here, again, there is a policy to progressively
increase presence in the distribution of LPG to the Peruvian market and to form
part of the new scenario through innovative products such as piped and
automotive gas, and by developing distribution channels.
Repsol may also
become engaged in other high-potential areas such as natural gas and
electricity.
There is an ambitious investment programme for Peru over the
next five years. Together with other shareholders, $117 million will be spent on
improving production structure at the La Pampilla refinery. Repsol will also
invest over $200 million on marketing and LPG.
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