PetroPeru's chairman, Alejandro Narvaez, disclosed that the company is planning to offer a minority stake to private investors in the latter half of 2025, Reuters reported.
This move is dependent on the company returning to profitability, which Narvaez anticipates will occur next year, with profits ranging between $200m (758.95m sol) and $250m.
Despite projected losses of $960m by year-end, Narvaez aims to reduce this figure to $860m, the report stated.
Narvaez said: "Nobody buys shares in a company that has huge losses. We could think about starting to offer those shares that are actually registered on the stock exchange in the second half of next year.
"The offering would be gradual. I would be lying if I said I know if it is going to be 10% or 20%, we will see how things develop."
He announced plans to seek new financing sources from creditors and implement strategies to minimise losses, including hiring an international management company.
Narvaez's appointment earlier this month followed the resignation of the entire board in September due to financial challenges.
Previously, PetroPeru stated it required $2.5bn to continue operations. In September, the government approved $1.75bn in financing to support the company, a step Narvaez said he would not pursue.
The loss of investment grade status in 2022 was a result of a crisis following a $6.5bn investment to modernise the Talara refinery.
The company issued bonds worth $3bn in 2017 and 2021 to finance the refinery and currently holds $1.3bn in debt with foreign banks, backed by CESCE (Spanish Export Credit Agency) guarantees.
Narvaez stated the company would not issue more bonds but would seek creditors instead.
"The worry (bondholders and creditors) has is that we are going to keep asking for more state financing," Narvaez said in a conference call with bondholders.
"As long as I am here, I will make dauntless efforts so that doesn't happen so that money can go to social programmes," he added.
PetroPeru, once a significant crude producer, has shifted focus to the Talara refinery. Narvaez is aiming for the refinery to reach its full capacity of 95,000 barrels per day by year-end and increase market share to 38% by 2025, up from the 28% expected in 2024.
Narvaez also plans discussions with Colombia's Ecopetrol and Ecuador's Petroecuador to purchase crude for the Talara refinery.
Since a wave of privatisation in the 1990s, PetroPeru had focused on refining and marketing fuels but resumed crude production in 2023 after private leases expired.
