Peru's State Oil Company Says Scraps Plan For 2015 Share Offer



Reuters

LIMA, March 30 (Reuters) - Peru's state-owned energy company Petroperu will not go through with a previously announced plan to sell shares on the local stock market this year, the firm's president German Velasquez told reporters on Monday.

In November the company announced its plan to offer up to a 49 percent stake to private investors during the second quarter of 2015.

Asked during a news conference if the plan would go through this year, Velasquez responded: "No, this year no."

He said the share offering will be considered when the company is "sufficiently attractive."

Peru passed a law in late 2013 allowing for the privatization of all but a controlling stake in Petroperu, as part of a bid to modernize the 40-year-old company.

On Thursday, Petroperu pulled out of plans to acquire a 25 percent stake in two oil blocks that it had planned to develop with conglomerate Grana y Montero, a reversal of the state-run company's plan to take part in oil production for the first time in more than 20 years.

(Reporting by Teresa Cespedes; Editing by Diane Craft)



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