Raw materials cost risk looming for Petroperú

Peru national oil company Petroperú’s activities present a high risk of increased costs of raw materials in the medium and long term.

That is according to a report the state operator released under the framework of the Task Force on Climate-Related Financial Disclosures.

“Taking into account the global risk based on the GHG [greenhouse gases] footprint, the state of profit margins of the O&G sector and the geographical exposure to carbon pricing risk for suppliers of raw materials (crude) and crude derivatives, we would face a high risk of increased costs,” the report states.

Meanwhile, there is a moderate risk of passing costs on to customers.

The study adds that in terms of political risk related to carbon pricing, the risk is low considering the NOC’s current GHG emissions, which rose in 2022 due to the gradual startup of the new Talara refinery.

That year, Talara accounted for 65.3% of the company’s emissions, followed by the Conchán refinery (13.5%), block I (8.7%), the Iquitos refinery (7.3%), the Norperuano oil pipeline (5%) and Petroperú’s head office (0.3%).

Petroperú highlighted the recent approval of its new basic organization structure which included the creation of a sustainability and energy transition project area within the sustainable development management unit.

The company also said it is completing an ESG sustainability strategy and implementation roadmap and setting key performance indicators and objectives to reduce GHG emissions.

The report is available here and in the Documents box in the top right corner of the screen.