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Peru's Petroperu eyes pipeline link for Ecuador oil

Petroperu, a state-run company, is working with Petroecuador on a framework deal to connect Ecuador's oil wells with the northern pipeline of Peru. This was announced by its chairman on Thursday.

The agreement is currently being drafted by Peru’s Ministry of Energy and Mines and would include commitments to invest and execute a connection line of approximately 60 kilometers (37 miles) in an Amazonian area on the shared border between the two countries.

Petroperu Chairman Alejandro Narvaez stated that "the exact investment and the financing of this connection have yet to defined."

The executive, speaking at a press conference with foreign media, stated that, after a period of development, the project would allow Ecuadorian crude to be transported via pipeline to the newly expanded Talara refinery, which produces 95,000 barrels per day, in northern Peru.

The Peruvian Oil Company, which is in a crisis due to the higher-than-planned investment made in Talara, anticipates a profit next year of $103 millions, compared with an estimated loss for 2025 of $223million.

Speaking at the same event, Petroperu CEO Oscar Vera said that Petroecuador was likely to make the bulk of the investment.

Vera stated that the current method of transporting crude oil by Petroecuador is extremely expensive.

Petroecuador didn't immediately respond to an inquiry for comment.

The 1,100-kilometer Peruvian pipeline is operational, but not in use, as there are no active transport contracts.

Separately Petroperu announced this week that they had exported approximately 137.500 barrels (of commercial jet fuel) to Ecuador from Talara. (Reporting Marco Aquino, Additional reporting Alexandra Valencia Editing Marguerita Choy.)

(source: Reuters)