(Adds confirmation from Mines and Energy Ministry)
By Ryan Dube
LIMA, Peru--Peru's state-owned Petroleos del Peru SA
(PETROBC1.VL), or Petroperu, has decided to not buy the local
assets of Spanish oil company Repsol SA (REP.MC, REPYY), the
government said Thursday.
Petroperu's board of directors decided to not continue with the
process after a technical and economic evaluation of acquiring the
assets, a spokesman from the Ministry of Energy and Mines said.
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 that 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.
Write to Ryan Dube at ryan.dube@dowjones.com
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