Peru oil field beset by violent protests

Spanish Market: Crude oil
09/08/20

Several indigenous protesters were killed and six police officers injured early today in a clash near block 95 operated by Canadian independent PetroTal in Peru's northern jungle state of Loreto.

Peru's interior ministry reported that around 70 people armed with spears and pellet guns surrounded the block late yesterday demanding that PetroTal halt operations.

The episode is the latest flare-up in a long-running indigenous conflict that has escalated over the past year. In the weekend's violent clash, the Kukama indigenous community was said to be protesting against the state for failing to respond to the Covid-19 pandemic and for environmental contamination caused by the oil industry.

The site around block 95 descended into a tense calm this afternoon ahead of the arrival of government commission, led by the culture ministry, to negotiate. The talks are among the first challenges for a new cabinet in Lima sworn in last week.

The incident drew conflicting accounts, with authorities claiming protesters fired on police officers, while the local organization of indigenous communities, Orpio, accused PetroTal security guards of opening fire. The ministry reported two deaths, but Orpio lists three dead.

PetroTal did not immediately respond to a request for comment. But the Peruvian Hydrocarbons Society, an industry group, said the incident was part of chain of events led by indigenous communities to force the state to comply with its plan to address the needs of communities in the oil-producing jungle region.

The group called for an impartial and thorough investigation "at this crucial moment in the health and economic crisis that threatens Peru."

Open and close

PetroTal reopened wells on its 40mn bl Bretaña field in mid-July after more than two months in anticipation of state-owned PetroPeru's restart of the 100,000 b/d northern crude pipeline to the coast. The 1,100km (684mi) pipeline was closed in May. The restart was supposed to allow PetroPeru to offer more medium sweet Bretaña crude on the spot market.

PetroPeru restarted commercial operations on the line on 1 August, but was forced to close it again within 24 hours when indigenous protestors took over a pumping station. The pipeline remains closed.

Besides PetroTal, whose operations averaged 10,000 b/d at the start of the year, other pipeline users are fellow Canadian independent Frontera for 10,000 b/d block 192, Argentina's Pluspetrol Norte for 5,000 b/d block 8, and European independent Perenco for 1,300 b/d block 67. The three blocks remain closed.

By Lucien Chauvin

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