LIMA – Peruvian state oil company Petroperu expects that the foundation work for the expansion and modernization of its Talara refinery will begin in the second half of 2015, Chairman German Velasquez said.
“The areas where the new refinery will be built are being cleared,” Velazquez said Thursday, adding that 300 workers have been hired thus far for the project, which is located some 1,200 kilometers (745 miles) north of Lima in Talara province, part of the Piura region, and will require an investment outlay of $3.5 billion.
Some 90 percent of the workers are from Talara in keeping with the terms of the environmental-impact study, which requires that local laborers make up at least 70 percent of the project’s unskilled workforce.
The chairman stressed Petroperu’s interest in ensuring that “the modernization of the refinery is carried out within the established timeframe and cost parameters.”
The Talara refinery’s current equipment was installed in the 1950s by International Petroleum Company, a U.S. firm that operated the facility until it was nationalized in 1968.
In May 2014, Petroperu and Spain’s Tecnicas Reunidas signed a concession contract for the refinery modernization, a project that is scheduled to be completed in 2019 and boost the facility’s processing capacity by nearly 50 percent to 95,000 barrels per day.