Peru Govt Names Cesar Gutierrez to Run State Oil Co

Dow Jones Newswires

LIMA Aug 24, 2006 (Dow Jones Newswires)

Energy consultant Cesar Gutierrez will become the president of the board of Peruvian state-owned oil company Petroleos del Peru S.A., or Petroperu, Mines and Energy Minister Juan Valdivia said Thursday.

Gutierrez will replace Roger Arevalo, who was named to the post by former President Alejandro Toledo.

The appointment, alongside others in the makeup of Petroperu's board, is taking place following the late July inauguration of President Alan Garcia.

"What we have done is to name persons with professional abilities, who are honest, and who have experience in the sector," Valdivia said in a radio interview.

Petroperu, created in 1969, owns refineries in Peru as well as a pipeline and service stations. It has about half of the market share.

A new law recently approved by Congress gives more independence to Petroperu, removing it from oversight by the National Public Investment System and from the National Fund for Financing State Business Activities.

Members of Congress said the new law would give Petroperu more autonomy and lead to a more rapid modernization of its refinery at Talara.

Brazil's Petroleo Brasileiro SA (PBR), or Petrobras, and Petroperu recently signed a memorandum of understanding that could lead to a wide range of activities for the Brazilian company in Peru's hydrocarbons sector.

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