(Maria Luisa Puig, Eurasia, 14.Sept.2015) – Indigenous groups occupied the installations of block 192, the largest oil field in the Amazon jungle, to force the government to listen to their economic and environmental demands. The Humala administration announced in Aug.2015 a 2-year contract with Canadian Pacific Exploration and Production (previously Pacific Rubiales) after an auction for a 30-year concession drew zero bids. Amid protests, Congress later passed a law that allows state-owned Petroperu to operate the block, a setback for the government.
Block 192 has faced several protests in the past, some of them also with disruptive effects on production. An inconclusive consultation process with some groups suggests these will persist.
More widely, recent protests highlight structural challenges facing investments in extractive sectors. Peruvians’ trust in institutions remains low, which makes protests the most viable alternative to channel discontent. The government has little capacity to prevent these or mediate between companies and social groups once they have started. At about 12,000 b/d, block 192 represents about 20% of Peru’s oil output.
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