Peru oil field beset by violent protests

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

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

17/01/25

Houthis signal Red Sea attacks pause after Gaza truce

Dubai, 17 January (Argus) — The Yemen-based Houthi militant group said it will monitor implementation of a temporary ceasefire between Israel and Gaza-based Hamas, raising the possibility of a reprieve for shipping in the Red Sea, but will remain prepared for military action if the deal is breached. "Our position regarding the situation in Gaza is linked to the position of our brothers in the Palestinian [armed] factions," Houthi leader Abdul-Malik al-Houthi said in a televised speech on 16 January. "We will continue to monitor the stages of implementation of the ceasefire agreement in Gaza, and any Israeli [violation], we will be directly ready to support militarily the Palestinian people." Al-Houthi's remarks suggest a halt in his Iran-backed group's campaign against shipping passing through the mouth of the Red Sea and against Israel directly. But with no clarity if he was referring to attacks on Israel or shipping lanes, shipping firms are likely to remain cautious about returning to the Red Sea. The Houthis began attacking commercial vessels with western and Israeli affiliations in the Red Sea and Gulf of Aden following an escalation of fighting between Hamas and Israel. Al-Houthi said his group have carried out 1,255 operations, including using ballistic missiles, drones and gunboats, since November 2023. But the risk of an attack in the Red Sea remains despite the ceasefire between Hamas and Israel, tanker owner Frontline said today. "We [are] all hopeful with the ceasefire, but… any ceasefire will be vulnerable with risk of [a] crew being caught if it breaks," Frontline chief executive Lars Barstad wrote on X. The possibility of an attack has compelled many ship operators to forego the Suez Canal in favor of longer voyages around the Cape of Good Hope in the last year, adding time and cost to movement of commodities. Transit of liquid and dry cargoes through the Suez Canal totaled 343,000t last year, less than half the 763,000t in 2023, according to data from Kpler. The ceasefire deal was announced late on Wednesday, 15 January, by Qatar and the US, two of the three countries that have been helping to mediate the negotiations between Israel and Hamas. Egypt is the third. Israel's security cabinet will meet today to sign off on the deal, and will send it for approval from the full government. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Mexico’s oil states led labor market losers in 2024

16/01/25

News

16/01/25

Mexico’s oil states led labor market losers in 2024

Mexico City, 16 January (Argus) — Mexico's oil and gas-dependent states led state job losses in 2024, driven by a sharp contraction in spending by state-owned Pemex and the completion of the Olmeca refinery, according to energy market sources and state data, even as two-thirds of the country's states posted job growth. Annually, the total employment in Mexico grew by 213,993 jobs in 2024, 67pc fewer than the 651,490 jobs added in 2023, according to the Mexican social security (IMSS) institute's tally of formal jobs, which have full benefits like better access to housing credits and public medical services. The deceleration in the number of jobs created last year adds to signals of a Mexican economy that was cooling as the year progressed, according to economists and energy market sources. "In 2024, the second lowest generation of jobs in the last 15 years was recorded, only after 2020, the year in which the Covid-19 pandemic hit," according to a report from Mexican think tank Mexico Como Vamos. Tabasco state, one of the most important for the energy sector in Mexico, led the reduction in employment among the 11 states that experienced job losses during 2024. Tabasco lost 28,675 jobs over the year, for a 12pc annual decline in employment in the state, according to IMSS data. Twenty-one states, including the capital, posted job growth. Campeche, the state with the second biggest annual percentage of job losses, and Tamaulipas, the other state with a high dependence on the oil sector, also reported significant declines in 2024, with annual formal job losses of 5,952 and 3,120, representing 4pc and 1pc decreases from a year earlier, respectively. These IMSS figures only account for formal jobs registered with the institute, which provide access to medical, pensions, and housing credits, and totaled 22.24mn as of December. The official statistics agency Inegi counts employment nationwide at 59.5mn as of the third quarter last year. Inegi's count of employment includes the informal sector, made up of jobs without social security and other benefits. Inegi's estimates put the informal labor sector at over 54pc of all jobs. According to IMSS, the country lost 405,259 jobs in December compared with November, the largest loss recorded for that month since 2000. Still, December is typically marked by heavy job losses because of seasonal adjustments. But last year the final month's tally was pulled even lower than normal by overall weak hiring over the year, Inegi said, even as total job growth was positive for the full year. While the labor situation in Mexico worsened in 2024 because of the weakening of the national economy, including a sharp depreciation of the peso to the dollar, the decline has hit the states most closely tied to the oil and gas sector and Pemex spending, said Carlos Ramirez, founder of consultancy Integralia. Tabasco hangover "Tabasco benefited greatly from the investment poured into Pemex by the administration of AMLO (former president Juan Manuel Lopez Obrador), Ramirez said. "This is going to change now with the (Claudia) Sheinbaum administration, and the state will suffer a hangover as the new government reduces its support for the oil and gas industry." Still, the national unemployment rate is low, at 2.6pc in November, according to Inegi. And the country added 361,000 jobs in the third quarter from a year earlier, according to Inegi's broader base of data. But the economy was slowing in the second half of 2024. Growth in gross domestic product slowed to an annual 1.6pc in the third quarter from 2.1pc in the second quarter, according to Inegi. Inegi's IGAE, an index that tracks the real economy, showed that the Mexican economy contracted 0.73pc in October, as economists lowered growth estimates for the Mexican economy for this year. Pemex chief executive Victor Rodriguez in early October implemented a 20pc cut to the company's upstream budget, aiming to save Ps26.78bn ($1.32bn). This decision, combined with delays in payments for contracts and a halt in new service agreements, severely impacted local companies in Tabasco and Campeche, according to oil services company association Amespac. Some companies announced layoffs as Pemex's financial constraints rippled through the supply chain. Part of Tabasco's workforce reduction could also be tied to the near-completion of the 340,000 b/d Olmeca refinery, said Jesus Carrillo, an analyst at think tank IMCO. While the major construction phases have concluded, the facility remains in a testing phase, contrary to Pemex's previous promises of full operations in 2024. Despite the recent downturn, heavy Pemex spending during the administration of former president Lopez Obrador made Tabasco the leading state in job creation between December 2018 and December 2024, Ramirez said. But with the refinery now completed and Pemex projecting further budget cuts for 2025, analysts expect labor market challenges in oil-reliant states to persist. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

BP to axe 4,700 staff, cutting 5pc of global workforce

16/01/25

News

16/01/25

BP to axe 4,700 staff, cutting 5pc of global workforce

London, 16 January (Argus) — BP confirmed today that its current cost-cutting programmes are expected to lead to a headcount reduction of around 4,700 roles at the company itself — about 5pc of its global workforce — along with a reduction of some 3,000 contractor roles. The job cuts were outlined in an internal email to employees from chief executive Murray Auchincloss in which he explained that since June last year BP has stopped or paused 30 projects as part of a multi-year plan "to simplify and focus" the company. It is also taking other measures, such as increased digitalisation, to drive efficiency into its organisation, he said. The email detailed the number of staff positions that would be affected and noted that 2,600 of the 3,000 contractors who are leaving BP had already done so. BP launched a cash cost reduction programme last spring aimed at shaving at least $2bn off the company's yearly outgoings by the end of 2026. Around a quater of those cost savings are set to be implemented this year. BP's overall employee numbers have grown to around 90,000, with headcount rising significantly over the past couple of years through acquisitions, including its purchase of service station network TravelCenters of America which brought 20,000 employees with it. The company issued a trading update on 14 January that flagged it would report a weaker fourth quarter when it releases its financial results on 11 February. BP is also scheduled to hold a strategy day in London on 26 February. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Trump energy nominee vows to expand US LNG

15/01/25

News

15/01/25

Trump energy nominee vows to expand US LNG

Washington, 15 January (Argus) — President-elect Donald Trump's nominee to lead the US Department of Energy (DOE), oil executive Chris Wright, said today he supports expanded LNG production and an "evolution" in energy systems to address climate change. Wright, the chief executive of oil services company Liberty Energy, told lawmakers he would focus on trying to "unleash American energy at home and abroad" and to restore "energy dominance" if confirmed to the position.Wright also said that DOE should support innovation and technology, and revisit federal policies that make it "too easy to stop projects" and very hard to begin them. "Previous administrations have viewed energy as a liability instead of the immense national asset that it is," Wright said at a confirmation hearing with the Senate Energy and Natural Resources Committee. "To compete globally, we must expand energy production, including commercial nuclear and liquified natural gas, and cut the cost of energy for Americans." Trump, after being sworn in on 20 January, is expected to quickly order DOE to lift a pause on licensing of new LNG export facilities that President Joe Biden imposed nearly a year ago. DOE is also responsible for managing the US Strategic Petroleum Reserve, which currently holds 394mn bl of crude, and oversees a vast portfolio of loans and grants for clean energy projects, including an $8bn program intended to support the development of new hubs for clean hydrogen. Wright did not offer in-depth comments on the timeline for issuing licenses to proposed LNG export terminals, which Trump has pledged to approve on his "very first day back." But Wright committed he would consider how licensing more LNG export capacity could affect US natural gas prices, which could increase by 31pc by 2050 if LNG exports are "unconstrained", a study from President Joe Biden's administration found . Democratic lawmakers at the hearing raised concerns about Wright's past comments that downplayed the risks of climate change. US senator Alex Padilla (D-California), whose state is dealing with tens of billions of dollars in damage from ongoing wildfires, cited a LinkedIn post in 2023 in which Wright said alarm about wildfires raging in Canada at the time were simply "hype to justify impoverishment from bad government policies." Wright, who wrote in a separate LinkedIn post that there is no "climate crisis" , said he stood by his 2023 comments on the wildfires. Wright said climate change is a "real and global phenomenon", and that DOE has a role to play by supporting progress in technologies such as nuclear, solar, geothermal and battery storage. "It is a real issue," Write said. "It's a challenging issue, and the solution to climate change is to evolve our energy system." Wright is widely expected to win confirmation in the Senate, where Republicans will have a 53-47 majority once Ohio governor Mike DeWine (R) fills the seat recently vacated by US vice president-elect JD Vance. Trump has said Wright will also serve on his newly created Council of National Energy, which will oversee policies across the federal government related to energy. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

IEA nudges global refinery runs forecast higher

15/01/25

News

15/01/25

IEA nudges global refinery runs forecast higher

London, 15 January (Argus) — The IEA has made a marginal increase to its forecast for global refinery runs this year, driven by the "recent resilient performance" of US and European refineries. The Paris-based energy watchdog now expects global crude throughput of 83.4mn b/d in 2025, whereas its previous projection was 83.3mn b/d. At the same time, it has trimmed its estimate for 2024 runs by 20,000 b/d to 82.7mn b/d on the back of downgrades in Asian throughput. The slight upgrade to the 2025 forecast assumes that US and European refineries extend their recent resilience through the first quarter. But "even as we turn more positive on the short-term outlook, it is important to acknowledge that European refineries remain under pressure from shifting trade patterns, rising carbon costs, higher energy outlays and looming capacity closures", the IEA said today in its latest Oil Market Report (OMR). OECD throughput is forecast to fall by 370,000 b/d to 35.7mn b/d this year "as capacity closures in the United States and Europe drag on activity levels", the agency said. But it marks an upwards revision from last month's projection for the OECD of 35.6mn b/d in 2025. The IEA sees non-OECD refinery runs rising by 1mn b/d to 47.6mn b/d this year. This is a downwards adjustment of 80,000 b/d from the last OMR, but the IEA also trimmed its estimate for 2024 non-OECD throughput by the same amount — so the growth rate is unchanged. The 2025 forecasts for India, China, Pakistan, the Philippines and Singapore have all been cut compared with last month's OMR. The IEA now expects Chinese runs to rise by 240,000 b/d to 14.8mn b/d this year. Last month's forecast had Chinese throughput increasing to 14.9mn b/d. "2025 could prove to be another challenging year for Chinese independent refineries, despite increased crude import quotas, as higher import duties squeeze profitability and recent US sanctions impact access to Russian and Iranian barrels," the agency said. The IEA has raised its 2025 forecast for Nigerian throughput by 60,000 b/d to 460,000 b/d, citing the restart of state-owned NNPC's Warri and Port Harcourt refineries and the start-up of Dangote's 150,000 b/d residue fluid catalytic cracking unit. But it noted that challenges remain in terms of crude supply. By Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more