Monday, February 16, 2015

Uncertainty regarding Pluspetrol's future in Peru

Conflicting reports emerged on Monday and over the weekend regarding Argentine oil company Pluspetrol’s future in Peru. The oil company has been the subject of repeated protests by local Peruvian communities, one of which turned violent late last week, leaving one protester dead and many others injured.

The Wall Street Journal reported on a deal supposedly brokered by the Peruvian government for Pluspetrol to leave Pichanaki, the area of the violent protests, ending the oil company’s exploration operations in the area. An Argentine news outlet provided additional context for the decision, explaining that Peruvian Energy and Mining minister Eleodoro Mayorga announced that the Peruvian government had officially asked Pluspetrol to end its operations in this part of Peru.

However, on Monday, conflicting reports began to emerge. According to Peruvian business journal Gestión, Pluspetrol confirmed that it would continue operating in Lot 108, the area in question, as the Peruvian government had made no motion to modify the legal and contractual situation governing Pluspetrol’s operations. The Argentine oil company emphasized that it has followed all legal, environment, and social requirements to operate in Peru, and wants to keep working and investing in Peru. With this statement, Pluspetrol has made clear that it will not simply forfeit its rights and investment without compensation.


To provide some context to the growing media storm surrounding Pluspetrol’s operations in Peru, leading Peruvian newspaper La Republica published a feature-length piece detailing and exploring the damages that Pluspetrol’s operations have inflicted on the Peruvian Amazon. According to the report, Pluspetrol is currently fighting in court to avoid paying 39.4 million soles in fines for environmental infractions that the oil company is accused of committing. La Republica’s report very clearly takes the side of Loreto’s indigenous people, providing historical background to their claims and protests against Pluspetrol.

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