Petroperu, Oil Company in Graft Probe, Says CEO Chavez Resigns

The Petroperu Conchan Refinery in Lima, Peru, on Thursday, March 17, 2022. Petroperu was cut to junk by S&P on Tuesday as the state oil producer becomes further mired in problems related to publishing an audited financial report that is worrying bondholders. , Bloomberg

Philip Sanders, Bloomberg News

Mar 20, 2022

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(Bloomberg) -- Petroperu SA announced the resignation of Hugo Chavez Sunday as CEO and director of the oil company.

Chavez will leave the company as of Monday, March 21, when the board of directors will name his replacement, according to a statement from the company.

Petroperu, which has about $3 billion of bonds outstanding, has been named in graft investigations by prosecutors looking into tender processes to secure supplies of biodiesel and meetings at the presidential palace with industry officials. 

The company’s $2 billion of notes due in 2047 tumbled as much as 14 cents this month to 75 cents on the dollar after Fitch slashed its credit rating on “lack of transparency and weakened governance.” S&P followed suit on March 15.

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