Challenges and reflections on proposals for restructuring in Petro-Peru

The recent announcement of measures by Petro-Peru has generated various opinions and reflections from experts and former officials in the energy sector. Former executives of the Ministry of Energy and Mines (Minem) and Petro-Peru, Erick García and Fernando de la Torre respectively, agree that while these proposals will not have an immediate impact on the financial situation of the state oil company, they can contribute to restoring the credibility lost in recent years and improving its internal and external image. The president of the board of Petro-Peru, Oliver Stark, has emphasized the importance of the proposals being supported by the General Shareholders' Meeting, composed of the Ministry of Economy and Finance (MEF) and Minem. However, the absence of the heads of these ministries has generated uncertainty about the official support for these measures at a crucial moment for the company. The need to reduce costs to halt Petro-Peru's operational losses has been highlighted by Alfredo Thorne, former Minister of Economy. However, Thorne warns that these measures must be supported by a law passed by Congress to ensure their viability and effectiveness, avoiding possible union interference that could hinder the restructuring process. In this sense, Carlos Paredes, former president of the board of Petro-Peru, has emphasized the importance of the corporation's decisions being effectively implemented, which has been a challenge due to possible conflicting interests from management and employees of the company. On the other hand, Fernando de la Torre has stressed the need for a law declaring Petro-Peru in restructuring and suspending union agreements to facilitate an efficient transfer of personnel to Talara. This challenge includes the complexity of existing labor agreements, which establish specific conditions for the relocation of employees and their families. The announcement to hire a restructuring company for Petro-Peru has sparked debate, with critical voices like Alejandro Indacochea, who emphasizes the importance of ensuring the management independence of this company to avoid political influences. Likewise, the possibility of an economic injection from the State to support this management is being considered. The need to separate short-term cash flows and consider the implementation of a cash flow trust has been proposed by De la Torre as a key measure to address Petro-Peru's working capital deficit. This approach aims to safeguard the resources necessary to improve the financial health of the company in the long term. Amidst these proposals, concerns arise about the viability of the measures presented to reverse Petro-Peru's credit rating, according to De la Torre. The sale of non-essential assets and other proposed actions may not be sufficient to address the financial challenges facing the state oil company. In conclusion, the measures announced by Petro-Peru have sparked a debate about the need for a solid legal and financial support to ensure their effectiveness. Transparency in management, independence of decisions, and the long-term viability of the proposals are key elements that must be considered in the process of restructuring the state-owned company.