[en] Petroleos del Peru predicts a 10% increase in Peru's oil production this year and a further increase in 1994. Petroperu also forecasts a sharp increase in drilling in Peru this year. After several years of declining oil production, a gradual turnaround in the cash strapped country's petroleum industry is largely tied to its progress in privatization. The government last year began a campaign to privatize all state owned companies by the end of July 1995. The paper discusses forecasts by Petroperu; the contract of Occidental del Amazonas Inc.; the Petromar privatization; Great Western's contract; development of the Aguaytia gas field; and refinery contracts