PetroTal shuts Peru field after clash, talks underway

Canadian independent PetroTal has closed its 10,000 b/d Bretaña field on block 95 in Peru's northern jungle after violent anti-government protests over the weekend.

The closure short-circuits the company's plan to supply the medium sweet crude to state-owned PetroPeru for offer on the international spot market.

Culture Minister Alejandro Neyra arrived yesterday at the Loreto region site with a government delegation to begin negotiations with the Kukama indigenous community involved in the clash that the government said left three of the protesters dead.

Neyra told state media that he would stay in the area until agreements were reached. And PetroTal said the block would remain closed until an investigation is completed.

The weekend protest is the latest expression of long-running grievances by Peru's indigenous groups over the state's failure to provide basic services and address concerns about environmental contamination from decades of oil production.

The new flare-up began last week when protesters took over a pumping station along PetroPeru's 100,000 b/d northern crude pipeline. The line had reopened on 1 August but was forced to close the following day because of the occupation.

PetroTal and three other oil companies use the 1,100km (684mi) pipeline to move crude from the jungle to Bayovar port on the Pacific coast.

Jorge Perez, leader of the indigenous organization Orpio, rejected allegations that protesters unleashed the violence. He told Argus they showed up at block 95 to force government authorities to fulfill past promises.

Social investment pledge

In February, just before the local onset of the Covid-19 pandemic, Peru's government pledged to invest $1.5bn in 2020-25 on social and infrastructure programs in Loreto's oil-producing territory. The plan called for construction of schools and water systems, two long-standing demands in 25 districts. The program was derailed by the pandemic.

"They have sent us goals and timelines, but so far not a single cent has been budgeted or invested," said Perez. "We are only demanding what they promised us after decades of neglect."

He said Orpio and national indigenous organizations want an independent investigation of the violence at block 95.

In addition to the three deaths, 11 other protesters and six police officers were injured in the weekend clash.

By Lucien Chauvin