LIMA, Peru--Peru's state-owned Petroleos del Peru SA
(PETROBC1.VL), or Petroperu, has decided to not buy the assets of
Spanish oil company Repsol SA (REP.MC, REPYY), local media reported
Thursday.
Petroperu's board of directors decided to not continue with the
process after a technical and economic evaluation of acquiring the
assets, newspaper El Comercio reported. Petroperu said it would
prioritize its current investment projects rather than purchasing
assets from Repsol.
President Ollanta Humala and other high-level government
officials have said recently the government was studying the
possibility of purchasing the assets, which include Repsol's La
Pampilla refinery and gasoline stations.
The government came under a firestorm of criticism this week
from opposition politicians and the business community over
concerns that the purchase of the assets would signal a policy
shift towards increasing the state's presence in the economy.
Currently, Petroperu owns a number of aging refineries and a
pipeline and leases its name for a chain of service stations.
Repsol has been selling some of its assets, and earlier this
year sold off a minority holding in Peru LNG, which produces
liquefied natural gas.
Petroperu said it had no comment.
Write to Ryan Dube at ryan.dube@dowjones.com
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