Wednesday, February 25, 2015

Social conflict continues between Pluspetrol and Loreto indigenous groups

The conflict continues between Argentine oil company Pluspetrol and the indigenous communities of the Loreto region in Peru. This conflict escalated significantly a few weeks ago when the indigenous groups seized Pluspetrol’s oil fields to put pressure on the company in negotiations over indemnifications for damage to the environment and compensation for the company’s use of local infrastructure. Tensions increased again over the weekend when the indigenous groups seized control of the oil company’s airfield.

According to the top police official in the region, General PNP Jorge PĂ©rez Flores, the indigenous people are acting peacefully and police officials are in the area to maintain order. The protestors did not cause any damage to equipment or hurt anyone, they simply shut down the oil company’s operations in the area. Estimates regarding the number of protestors who seized the airfield ranged from 50 to 400 people.

As usual, reports on the latest incident noted that Pluspetrol was not available to comment. The Argentine oil company has consistently been late to engage with the press and present its side of the story to influence reporting of the conflict.

Meanwhile several oil companies are eagerly anticipating the resolution of negotiations between Pluspetrol and the indigenous groups. Peruvian oil company Perupetrol is waiting for the talks to conclude so that it can open up bidding on the 1-AB oil block, which is currently occupied by the protestors.


In separate news related to the oil industry, Peruvian business journal La Republica reported on foreign ownership of Peru’s oil resources. The report explained that the Peruvian government plans to strengthen Perupetro, the Peruvian state oil company, giving Perupetro an ownership stake in the country’s domestic oil projects. Globally, 85% of oil reserves are in the hands of state oil companies. However, in Peru, 51.7% of oil production is in the hands of foreign state oil companies, principally Chinese companies.

No comments:

Post a Comment