Protests continue over Peru's Lot 192

For years, Peruvian governmental officials have known that the biggest obstacles in the way of Peru tapping its economic potential are the frequent social conflicts between local communities and the central Peruvian government and the large mining and oil interests in the country. However, time and time again, local communities have shown that they can successfully stand up to the Peruvian government and to powerful corporate interests through forceful, violent protests.

First, the social conflicts afflicting Peru’s mining industry took center stage, and now it’s the country’s embattled oil industry. Amid the uncertainty over Lot 192 and whether Canadian oil company Pacific Stratus or Peruvian state-owned oil company Petro-Perú will run the oil block, the local communities have decided to take matters into their own hands. A tribal leader in Loreto told Reuters that protesters have taken over oil production facilities and the local airfield in an attempt to force the government to come to the table.

Feconaco, the confederation of local indigenous groups, told the press that the protest would continue indefinitely, and accused Pacific Stratus of putting out hits on local community leaders that have opposed foreign operation of Lot 192.  

Given the prominent coverage and discussion of Petro-Perú, Peruvian business journal El Comercio published a feature outlining the state-owned oil company’s project pipeline for the next 6 years. The biggest project coming up for Petro-Perú is the $3.5 billion expansion and modernization of the Talara oil refinery.