On September 15, 2018 indigenous federations from the Amazonian Loreto region of northern Peru scored a small victory in the fight for community rights. Representatives from four federations signed an agreement with the Peruvian government and the state-owned enterprise PetroPerú that acknowledges prior consultation as part of the new contracting process for petroleum Block 192. Under the new agreement, Block 192 will undergo a community consultation process before PetroPerú awards a new contract for operating the oil field…
Under the formal resolution with Prime Minister César Villanueva, the Ministry of Energy and Mining, and PetroPerú, the government will complete the community consultation for Block 192 between December 2018 and March 2019.
Extending across the Tigre, Corrientes, Pastaza and Marañón river basins in Peru’s remote Loreto province, Block 192 is the largest-yielding oil field in Peru, accounting for 17 percent of the country’s production. The government plans to continue production of oil at the block for another 30 years, adding to the almost 50 years of oil activity in the region. The oil field is currently operated by Canadian-based Frontera Energy, whose contract with PetroPerú is set to expire in September 2019.
American-based Occidental Petroleum discovered oil in the region in 1972 and a succession of companies, including the Dutch-Argentinian conglomerate Pluspetrol, left Block 192 (previously Block 1-AB) heavily polluted. While Peru’s Agency for Environmental Assessment and Enforcement fined Pluspetrol for violations, the Peruvian government remains in a protracted legal fight with the oil giant. A majority of the fines are outstanding and Pluspetrol denies any wrongdoing, despite settling with a local community in 2015.
For over 40 years, the indigenous Kichwa, Quechua, Achuar, and Urarina peoples who live near the oil field have been exposed to salts, heavy metals and hydrocarbons. According to a 2018 toxicology study by Peru’s National Center for Occupational Health and Environmental Protection for Health, over half of the indigenous residents in the region’s four basins have blood lead levels that surpass international recommended limits. A third have levels of arsenic and mercury above the levels recommended by Peru’s Ministry of Health…
The actual cost of cleaning up Block 192, along with neighboring Block 8, would approach $1 billion. To make matters more challenging, the $15 million fund of Peruvian government is almost exhausted..”
Excepts from Andrew Bogrand, Righting the many wrongs at Peru’s polluted oil Block 192, Nov. 2, 2018