Peru is rekindling plans to exit shares in its state oil firm in a bid to keep up with the soaring energy demand in Latin America, according to Businessweek.

The government of Peru will seek congressional approval for an initial public offering (IPO). This is part of a plan to sell as much as 49% of Petroleos del Peru SA (Petroperu), according to Energy and Mines Minister Jorge Merino. He also said on December 6 that Peru will build a new refinery worth USD3.5 billion, the report detailed.

President Ollanta Humala is aiming to succeed where the previous president, Alan Garcia, failed, said the report. Humala looks to open up Peru's biggest state firm to private capital while maintaining government control. Brazil and Colombia use this model, Businessweek noted. Merino said Petroperu and its advisers will plan a strategy to attract private investors, the report said.

President Humala said, "The aim is to internationalize the company, put it on a par with other competitive companies in the world, and especially Latin America. It's important to look at examples of other companies in the world that have been able to grow with the injection of private capital."