Investors eye Bayóvar port as oil distribution center

Foreign investors have expressed interest in Peru's Bayóvar port, in northern department Piura, state-owned oil company Petroperú reported in a release.

If these interests move forward and investors carry out their project, the port would become the main receiving and distribution center for oil and oil-refined products on the American Pacific coast, Petroperú president César Gutiérrez said in the release.

Because of its geographical characteristics, Bayóvar could store up to 10Mb of oil, surpassing even the Panama Canal's capacity, which can currently handle up to 5Mb of oil between its Pacific and Atlantic installations.

Currently, Bayóvar's 27m dock draft can handle ships transporting 1.5Mb of oil and has the capacity to store 2Mb. To store another 8Mb, a new storage area would be constructed, Gutiérrez said.

The initiative would call for an investment of roughly US$200mn, he added.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: March 10, 2008