The board of directors of the troubled Peruvian state-owned oil company, Petroleos del Peru, has demanded that the government sell a majority stake in the company to the private sector, as it continues to incur losses.

Petroperu has been suffering from persistent losses, and recently downgraded its 2024 financial forecast due to power outages at its new Talara refinery.

At a time when the government developed a rescue plan worth $2.2 billion, the Board of Directors demanded that the company be placed under “special management,” and if the government refused, the Board of Directors proposed selling a majority stake in the company to the private sector.

This is the Board's first proposal to privatize Petroperu, and represents a shift from previous privatization pressures coming from outside the company.