PERU OIL UPDATE

Edward H Hammond (perezoso@igc.apc.org)
Mon, 25 Apr 1994 21:44:00 PDT


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PART ONE - PLEBISCITE ON ED'S PERU OIL POSTS
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PLEASE HAVE PATIENCE, BIG NEWS FOLLOWS...

To All,

Every couple of months over the last year and a half I've posted news on
several places on the net regarding the activities of oil companies in the
Peruvian Amazon. I gather this news and post it in my spare time. I am
motivated to do so not because I want to denounce Peru's justifiable
desire to develop and utilize it's natural resources; but rather to draw
attention to the fact that current plans to encourage oil production are
unfortunately being implemented at the expense of the country's indigenous
people and to the detriment of it's environment.

If you're in agreement with me so far, you might sympathize with my other
important motivation. In the glare of the well-deserved attention given
the deplorable situation in Ecuador's Oriente, it is perhaps easy to
forget that similar conflicts are occurring in other parts of the Amazon.
They also deserve the attention of the environmental and human rights
communities. The problem is a regional one and should more often be
addressed as such.

So, is it worth your while to have my news land in your mailbox? I would
like to hear from people who receive these posts. Nothing extensive; just
say in a line if you'd like me to keep it up; or if you'd rather I didn't
clutter your mailbox. Please take 30 seconds and send me a quick note at
the following address:

perezoso@ccwf.cc.utexas.edu

THANKS !!! On to the news....

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PART TWO: PERU OIL NEWS
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TRANSAMAZON PIPELINE POPS A RIVET AND IT'S A GUSHER;
BUT THE SHOW GOES ON.....
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On March 30 the only pipeline connecting Peru's Amazon with export
and refining facilities on the Pacific coast ruptured in the tropical
forest and spilled crude from the Petroperu and Occidental wells it
serves. The break occurred along the shore of the Maranon River in
northeastern Peru and the majority of the crude was apparently disgorged
directly into the river.

On April 15th Petroperu stated that the spill was contained after
"3500 cubic meters" of crude were lost, while an April 14th UPI article
citing "Petroperu technicians" said that "10,000 barrels a day are
spilling because of the rupture and that the figure could increase to
30,000."

The spill continues to effect local indigenous communities who
depend upon the Maranon and it's tributaries for fishing, drinking water,
and transportation. Miqueas Mishari, the president of AIDESEP (the
Interethnic Association for the Development of the Peruvian Amazon) told
57and transportation. Miqueas Mishari, the president of AIDESEP (the
Interethnic Association for the Development of the Peruvian Amazon) told
UPI "The government isn't worried about the effects of the spill on the
Indian communities," and called upon President Fujimori to "listen to us,
to take into account that we exist, to talk to the communities." UPI
noted that Jose Suarez, the President of the Peruvian Foundation for
Nature Conservation joined native representatives in calling for an
independent assessment of environmental damage.

Less than three weeks after the pipeline rupture, Petroperu chief
Miguel Celi Rivera was at Payacacu, one of the company's new Amazon drilling
sites, claiming that Peru's overall output of crude will increase from the
current 132,000 barrels/day to approximately 300,000 barrels/day over the
next two years. He attributed this to the forthcoming effects of the
"intense promotional campaign" that Peru has embarked upon to sell oil
rights. The dramatic increase in production would make Peru a net oil
exporter of a magnitude similar to Ecuador (a former OPEC member), which
also produces about 300,000 barrels/day.

Of the approximately 59 million hectares of land (147 million
acres) with potential for new petroleum production in Peru, 49 million -
83 percent - are in the Amazon rainforest. Peru, at the behest of
multilateral lending agencies (IMF/IADB/ World Bank), has sold the rights
to these areas as fast as possible in recent years in order to earn
foreign exchange to pay international debts. The payoff may come in terms
of increased production; but at what human and ecological price?

A quick consideration of the facts yields scary answers:
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-With Peru's coastal oil reserves depleted and 83% of unexploited lands
located in the Amazon, meeting Petroperu's production goals means at least
a threefold increase in Amazon production.

-The 24 year-old transamazon pipeline that will transport the vast
80-The 24 year-old transamazon pipeline that will transport the vast
majority of this oil to refining and export centers on the coast is
falling apart while pumping at about 50% capacity. What is going to
happen when the volume it transports is greatly increased?

- In order to "sweeten the deal" for prospective bidders in Petroperu's
troubled and many times delayed privatization (there already are about 20
foreign oil companies operating in Peru), Petroperu recently initiated
drilling in Lot 8 in the Amazon, an ar ea covering 182,000 hectares.

-Mobil and ELF (France) plan to initiate exploration activities using a
German contractor in the pristine Madre de Dios region of southeastern
Peru in May. Normal exploration activity entails the clearance of
multiple paths several meters wide through the jungle and the detonation
of a series of dynamite explosions along those paths sufficiently large to
ruin hunting and sometimes fishing for native communities.

- Oil companies continue to operate with complete disregard for the land
rights of those who live in the areas they fancy for oil production.
Mimicking their cohorts in Ecuador, the attitude of oil companies - such
as Houston's Edward Callan Interests - to date is that purchasing drilling
rights from the central government absolves them of any responsibility to
the people whose livelihoods and environment they impact.

END

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FOR MORE INFORMATION:

INTERNET: perezoso@ccwf.cc.utexas.edu

ECONET: perezoso

AIDESEP (Asociacion Interetnica de Desarrollo de la Selva Peruana):

AIDESEP
Avenida San Eugenio 981
Santa Catalina
Lima 13
PERU