Peru prime minister calls for 'drastic' measures to help state oil company
Adds comments by prime minister, background, paragraphs 2-3 and 5-6
By Marco Aquino
LIMA, Sept 4 (Reuters) -Peruvian Prime Minister Gustavo Adrianzen said on Wednesday that state oil firm Petroperu requires "immediate and drastic" measures to tackle a financial crisis in which debt has mounted and cash to keep operations running has dwindled.
"Petroperu has a governance problem and it urgently needs to be provided with a line of credit," Adrianzen told reporters, adding that the company was considering hiring a private manager to help run it.
He cited large government debts that make the measures necessary.
The company had previously argued for private management as part of a restructuring plan, which would also sell off non-operative assets and slash payroll.
President Dina Boluarte had ruled out privatizing the firm, according to Adrianzen.
Petroperu mostly refines imported crude oil, and two years ago lost its coveted investment grade rating.
Officials have been looking at ways to help Petroperu avoid bankruptcy or liquidation.
In July, Ecuador said it would work with Peru to boost integration around crude processing, possibly processing Ecuadorean oil at Petroperu's Talara refinery.
The company said two months earlier that it needed $2.2 billion in imminent financial help, and has forecast millions of dollars in additional losses this year.
Reporting by Marco Aquino in Lima
Writing by Sarah Morland
Editing by Aida Pelaez-Fernandez and Matthew Lewis
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