Repsol has finalized the delisting of the La Pampilla refinery from the stock market in Peru. The oil company, which accumulated three years of losses, has decided to acquire 7.8% of the capital that was in the hands of minority shareholders.
The oil company, which controlled this company through a subsidiary in the Netherlands, announced the operation last February and has now closed the exclusion.
For the valuation of the shares, the oil company has had a report prepared by Alkia Capital and Barron Valuation, as required by the regulations of the Superintendency of Securities to ensure that the operation is carried out at an appropriate price for small shareholders.
In June 2021, Repsol also hired the advisory services of BBVA Peru to carry out an independent valuation and prepare a Valuation Report for the refinery, which also included that of its network of service stations.
The oil company, according to the report, expects to invest in the coming years around 30 million in maintenance and 10 million for the commercial phase, and considers that the plant should be closed in 2046.
Within these investment plans, the Spanish company has started a project to expand its gasoline treatment units that will allow increasing the production capacity of higher quality gasoline in the local market, with a sulfur content equal to or less than 10 ppm (particles per million).
In its 25 years of experience in the country, it already exceeds 3,600 million dollars
The planned investment in La Pampilla is of the order of 30 million and reinforces Repsol’s investment process in Peru, which, in its 25 years of experience in the country, already exceeds 3,600 million dollars.
The entry into service of the aforementioned project is scheduled for the first quarter of 2024. On the other hand, the increase in gasoline production at the local level also implies reducing fuel imports, which will also allow to maximize the activity of the Refinery and the use of its installed capacity despite the planned entry into operation of the Talara refinery, owned by Petroperú, which will increase competition.
In 2019, Repsol began at La Pampilla Refinery, as well as at its plants in Spain, the production of low-sulfur fuel oil for the maritime sector, to comply with the guidelines of the International Maritime Organization. Also in 2019, Repsol became the first company in its sector worldwide to commit to being carbon neutral by 2050, which was a catalyst for other companies, which have subsequently taken on similar challenges.