Announcement of Peru to Improve Oil Industry Operations with Five Million Three Hundred Thousand Dollars Loan from the World Bank on March 29, 1982

0 )0R 1M""EDIATE RiLEASE m ~ 1818 H Street, N.W. 1 Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 !.) BANK NEWS RELEASE NO. 82/69 Contact: Ciro Gamarra March 29, 1982 (202) 477-8034 PERU TO IMPROVE OIL INDUSTRY OPERATIONS WITH $5. 3 MI LL ION LOAN · FROM THE .WOR~.P · eANK / Peru wi11 review its refinery operations and study ways of reducing operating costs through energy conservation with the help of a World Bank loan for\·$5.3 million. PETROPERU, (the National Petroleum Company), the implementing agency of the $7.3 million projec; will irt'itiate studies on energy reduction, as part of the 1 , country's first major effort at conservation. These are v!tal to the government's long-range plans to continue to satisfy aomestic demand for petroleum products and maintain 011 exports. A previous $32.5 million World Bank loan in March 1980 to PETROPERU is being ,. used to expand oil production in the country. The new project will concentrate on two refineries, La Pampi11a and Ta1ara, which have a combined production rate of 165,000 barrels per d~y, 92% of the total refining capacity of f:.ijru. Four smaller refineries ,wi 11 also be affected. To prevent deterioration of their performance, the project will undertake to improve the main- tenance system, expand training procedures for employees, remove bottlenecks in exist- ing plants, and improve yields of higher value petroleum products. The energy conservation program wi11 pay special attention to several areas, including utilization of waste heat, co-generation of power and steam, and installation of new instrumentation to detect and help overcome energy and material losses. Particular problems such as the improvement of product quality in PETROPERU 1 s grease and lubricating oil plant will be studied. As part of the project, PETROPERU 1 s project planning capacity will be strengthened through technfcal assistance and training in the preparation of feasibility studies, industrial planning, and cost estimation. The results of the studies and programs carried out in the project are expected to yield high economic returns. The estimated production increase from the refineries is 10% to 20% by 1985 when the project is completed. The address· for PETROPERU is: Pa sec, ~de 1'3 Repub 1i ca 3361 , Li ma 27, Peru; cable PETROPERU, Lima Peru; and telex 25592 ~E or 20303 PE. The World Bank loan is for 17 years, inclu·.iing four years of grace, with interest at 11.6% a year; <:the loan also carries an annual commitment charge of 0. 75% on undisbursed ba1ances, and a front-end fee of 1.5% on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.