By Ryan Dube
LIMA, Peru--Peru's National Mining, Oil and Energy Society, or
SNMPE, said Tuesday that the government's interest in buying a
refinery and gasoline stations sends a bad signal to the business
community.
President Ollanta Humala and other top government officials have
said recently that they are looking at the possibility of buying a
minority stake in the assets, which are owned by Spain's Repsol SA
(REP.MC, REPYY).
Repsol has been looking to sell its assets in Latin America and
elsewhere. In Peru, Repsol owns a network of gasoline stations, La
Pampilla refinery and a cooking-gas-distribution network.
The purchase, which would be made through state-owned oil
company Petroleos del Peru SA (PETROBC1.VL), or Petroperu, has come
under fire from the private-sector and opposition politicians who
accuse the government of wanting to increase the state's presence
in the economy and control fuel prices.
The SNMPE, a prominent association of private-sector companies
working in Peru's mining, petroleum and energy sectors, joined
others on Tuesday in opposing the government's plans, saying it
could hurt business confidence in Peru.
"It is essential to maintain the confidence that our country has
won in order to capture the prívate investments necessary to
continue on the path of growth," SNMPE President Eva Arias
said.
SNMPE estimates that purchasing the assets would require an
investment of about $2 billion. Ms. Arias said the government could
better use the funds to invest in improving health care, education,
security and infrastructure.
Write to Ryan Dube at ryan.dube@dowjones.com
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