Peru

The move opens key assets to private investment and comes as Petroperu faces mounting losses and debt.

Peru’s government has approved an emergency decree allowing private investment in parts of the state-owned oil company Petroperu, as authorities move to stabilise a firm weighed down by mounting losses and debt.

President Jose Jeri announced the decision shortly before the beginning of the new year.

The measure permits the reorganisation of Petroperu into one or more asset units, opening the door to private participation in key operations. That includes those at the flagship Talara refinery, which recently underwent a $6.5bn upgrade.

Beyond the refinery, Petroperu operates or holds concessions for six crude oil blocks with limited production, alongside a nationwide fuel distribution and marketing network.

In a statement, Peru’s Ministry of Energy and Mines said the decree seeks to “ensure compliance with financial obligations through technical management of its assets, laying the foundation for Petroperu to become a self-sustaining company”.

The ministry said the company’s financial position “is particularly sensitive”, citing accumulated losses of $479m between January and October 2025, as well as debts to suppliers totalling $764m through December.

Those figures come on top of reported losses of $774m in the previous year.

Petroperu’s financial strain has been compounded by debt linked to the Talara refinery modernisation, which ultimately cost double its original estimate and led to the company losing its investment-grade credit rating in 2022.

Since then, the government has repeatedly stepped in to support the firm, providing about $5.3bn in financing between 2022 and 2024.

The company, which is seen as crucial to Peru’s energy security, has also faced environmental scrutiny.

Authorities declared an “environmental emergency” and launched an investigation following an oil spill along a stretch of the country’s northern coastline in 2024, affecting an estimated 47 to 229 hectares (about 116 to 566 acres).

The Petroperu restructuring effort comes amid persistent political instability in Peru. Several presidents have failed to complete full terms in recent years, including Dina Boluarte, who was impeached by Congress in October.

Her successor, Jeri, has struggled to steady leadership at Petroperu, appointing three board chairs in just three months.

The move comes as Peru faces continuing political volatility, economic uncertainty and public pressure for stronger oversight of state institutions.

Local officials say the death toll could rise as seven people are missing following the attack on New Year’s Eve.

At least three people have been killed and seven remain missing following an attack on an informal mine in northern Peru, according to local officials.

In a video shared by the Peruvian news outlet Canal N on Thursday, Pataz Mayor Aldo Marino said the attack took place about an hour before midnight on New Year’s Eve.

“According to information I received from the police, three people were killed at a mine entrance, and seven are missing,” Marino said, noting that the final death toll could be as high as 15 as more bodies are recovered.

Details of the incident are still emerging, but informal mining operations are a frequent source of conflict in South America, as criminal groups jockey for control.

The latest incident took place near the town of Vijus, in the department of La Libertad in northwestern Peru.

Police reported that 13 miners had been killed in the same region last May. That incident prompted a stern response from local authorities, including the 30-day suspension of mining activities and a night-time curfew.

The region is known for its gold mines, including one of the largest in the world, Lagunas Norte.

But informal mines have also cropped up, as rural residents and criminal gangs try to carve a fortune from the mountains of Pataz, the province where the recent bloodshed unfolded.

In the wake of Wednesday’s incident, police have arrested two people, and an investigation is under way.

The news agency Reuters cited local prosecutors as saying that 11 shell casings had been recovered at the scene of the attack.

A mining company, Poderosa, also told the media that its security personnel had heard the gunfire and, after approaching the crime scene, discovered that three people were dead.

Many informal miners operate using temporary permits issued by the government, known as REINFO permits.

Reuters reported that the government suspended the permits of about 50,000 small-scale miners in July as part of a formalisation process, allowing about 30,000 to continue operations.

Peru exported $15.5bn worth of gold in 2024, compared with $11bn the year before. The country’s financial watchdog has estimated that about 40 percent of the country’s gold comes from illicit enterprises.

Dec. 18 (UPI) — Peru signed a strategic agreement with South Korean defense firm Hyundai Rotem for the future acquisition of tanks and armored vehicles — a deal that, if finalized, could become South Korea’s largest land-defense export to a Latin American country.

The agreement involves the sale of 54 K2 main battle tanks and 141 K808 armored personnel carriers, with an expected value that exceeds $1.4 billion, RPP Noticias reported. It would mark the first sale of this type of South Korean military equipment in the region.

Peru’s Ministry of Defense said in a statement that the agreement also includes technological cooperation, financing options and the promotion of industrial projects linked to the defense sector, in line with the country’s plans to modernize and strengthen its military capabilities.

Peruvian lawmaker and former admiral Jorge Montoya told UPI that military cooperation between the two countries began about a decade ago through contacts between Peruvian shipyards and Hyundai.

“For the past 40 years, Peru has acquired weapons from Germany. However, after a series of economic and technological assessments, the decision was made to change suppliers to Hyundai,” Montoya said. “A cooperation agreement has also been signed with them for the development of submarine units.”

Montoya said the goal of the agreement is to ensure a defense capability suited to the country’s realities.

“We are not seeking to compete with any country in the region, because other countries spend twice as much on defense as we do,” he said. “Peru allocates the smallest share of GDP to defense, just 0.8%. All countries are ahead of us, including Bolivia.”

He added that Peru’s extensive borders require modern capabilities for the armed forces.

The framework agreement sets the stage for deliveries beginning in 2026, with the possibility of local assembly starting in 2029. The plan includes joint industrial projects involving Peru’s Army Weapons and Ammunition Factory and Hyundai Rotem.

Maj. Gen. Jorge Arevalo, commander of the Army’s Logistics Command and a board member of the state-owned arms manufacturer, recently confirmed that South Korean partners are planning an initial $270 million investment to build an industrial complex in Peru where K2 tanks and armored vehicles would be assembled, Peru 21 reported.

Peru’s Prime Minister Ernesto Alvarez said the Army is recovering lost capacity to transport troops in armored vehicles, a process that also involves acquiring front-line tanks to replace Soviet-era T-55 models that he said no longer have deterrent capability.

Alvarez also confirmed that Peru this week received a second batch of three UH-60 Black Hawk helicopters donated by the United States under an agreement signed in October last year for a total of nine aircraft.