LIMA, May 13 (Reuters) - Peru's state-owned Petroperu oil company, which needs for $2.2 billion in imminent financial help, proposed on Monday that the government consider installing private management at the firm as the best way to overcome its cash crunch.

The company, which forecasts millions of dollars in additional losses this year, said it had sent the proposal to President Dina Boluarte, describing its current financial condition as "extremely grave."

Private management "is the best option to bring about the return of financial self-sufficiency," it said in a statement.

Boluarte's office did not immediately respond to a request for comment.

The unusual request comes at a time when Boluarte's government is carrying out a selection process for a new state-controlled board for the company, following several other management shake-ups at the troubled firm.

Petroperu, which refines imported crude oil, has previously said it was evaluating an injection of private capital along with offering a minority stake in the company.

In 2022, it lost its coveted investment grade rating from credit agencies due to a crisis after a $6.5 billion rehabilitation at its Talara refinery that was financed with bonds, loans plus government funds.

Since then, Petroperu has received three capital injections from the government, the last one totaling $1.3 billion backed by loans and announced in February.

After nearly three decades of not producing any crude oil domestically, Petroperu recently began to produce small amounts over three areas that were operated by private producers until they reverted to government control after the contracts expired last year.

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https://www.reuters.com/markets/commodities/perus-state-oil-firm-petroperu-seeks-private-management-overcome-cash-crisis-2024-05-14/