Thursday, September 3, 2015

Escalating protests force Peruvian government to reconsider its oil policy

Over the last few weeks, community leaders, civil society organizations, and the regional government in the Peruvian region of Loreto have steadily ramped up their protests calling for the nationalization of Peru’s most productive oil field, Lot 192. The protesters rejected the Peruvian government’s recent decision to award operational control over the field to the Canadian oil company Pacific Stratus Energy and vowed to continue protesting until Peruvian state-owned oil company Perú-Petro was given control over the field.

On Wednesday, national and international media outlets reported on the expanding protests in the Peruvian Amazon. Loreto governor Fernando Melendez told Reuters, “The only thing foreign companies have done is pollute and foment distrust among local populations. We don't see any benefits and remain an impoverished region.” Protestors shut down the regional capital of Iquitos, led and organized by the Patriotic Front of Loreto.

The next day, the Peruvian government started shifting its stance to meet the demands of the protestors. The Peruvian Commission for Energy and Mines approved a proposal for Perú-Petro to administer Lot 192. Peruvian officials disagreed about what this decision means for Lot 192.

Congressman Manuel Dammert told the press that “There are new elements during the course of this debate. This lot is strategic. For the national interest, it should be run by Petro-Perú. Without Lot 192, the Talara Refinery will shut down. Today, Loreto celebrates, Talara celebrates, and the whole country celebrates because today we have an integrated company to support national energy security.”


However, Congressman Javier Bedoya reminded the press that, under existing law, the Commission could not change a signed contract. It still remains to be seen what will happen to Lot 192.

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