Now, however, Petrotal will be able to manage its cash
flow much more smoothly. The two companies have struck a new arrangement
whereby all production in excess of the 1,200-barrel-a-day agreement
can be shipped via pipeline after being delivered to a station in
Saramuro. Petrotal will no longer have to wait until the oil is sold in
Bayovar to receive payment, and will be able to submit monthly invoices
The advantage to Petroperu is that the deal secures feedstock
for a new refinery set to open in 2021. PetroPeru was so pleased that it
published a press release on Christmas Day, extolling its
"public-private co-operation mechanism" and "synergy with Petrotal"
(translated from Spanish). Petrotal's CEO, Mr. Zuniga, was also
thrilled, declaring this morning that he is "pleased that PetroPeru has
exhibited such confidence in oil production from the Bretana oil field
as our good-quality oil output increases."