PetroTal creates ‘social fund’ to end conflicts in Peru’s oil sector | America

PetroTal said Friday it had proposed to the Peruvian government the creation of a “social fund” and a “domestic trust fund” to end protests against the sector affecting the operations of oil companies in the South American country.

PetroTal, which is headquartered in Canada, cannot pump the crude it produces in the Amazon region of Loreto because the pipeline it uses, which is owned by state-owned Petroperú, has been paralyzed since the beginning of October due to indigenous protest. The company plans to ship its crude to Brazil for export.

The 1,100-kilometre pipeline that pumps crude oil from the jungle to the Pacific coast has suffered for years from attacks by Amazon communities demanding greater social investment from the state. Petropero evacuated its workers this week for fear of further protests.

The company said in a statement that the establishment of the social fund, which will be financed by 2.5% of the value of crude production, will require amending the licensing agreement that Petrotal owns for the 95th block that it is exploiting.

Meanwhile, he said the fund will ensure transparent use of funds, so that development projects can be implemented in communities close to oil exploitation.

PetroTal said it had sent its proposal to Prime Minister Mirtha Vásquez, the Ministry of Energy and Minerals and government promoter PeruPetro. It was not possible to contact representatives of those bodies for comment.

Social conflicts in Peru have increased in recent months amid the rise to power of leftist President Pedro Castillo, who won elections on a promise to grant greater economic benefits to communities that host natural resources but live in poverty.

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Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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