Peru The state-owned oil firm failed to secure bids for developing oil fields that intersect with the lands of various Indigenous groups, leading to commendations from communities and environmental advocates on Friday.
The land parcel referred to as Block 64 overlaps with the ancestral territories of the Achuar and Chapla peoples, who have long been engaged in resistance against oil operations.
The unsuccessful bid by Petroperu on Thursday has hindered plans to increase oil production in the area.
“Given the extensive efforts we’ve undertaken, this is welcome news – both a relief and a reason to remain vigilant,” Olivia Bisa Tilco, president of the Chapla State’s Dominant Territory Government in Loreto, Peru, informed The Associated Press via phone.
In a statement, Petroperu indicated that while some companies showed interest in Block 64, they ultimately withdrew due to internal strategic shifts rather than external pressures.
The company refuted claims of Indigenous opposition, asserting that it actively encouraged community support for oil development initiatives. It also mentioned that the block received the necessary community approval, known as a social license, which is crucial for multinational oil and gas projects to advance without conflict.
Since 1995, Indigenous groups have strongly opposed oil development in the region, frequently blocking operations due to concerns about the environment and human rights. In 2022, Petroperu was managing Block 64, which is recognized as an oil concession allowing the government to explore and extract oil from a designated area.
“It’s been a struggle since the Peruvian state granted concessions without proper consultation or consent from Indigenous communities. For more than 25 years, we have been defending our right to live in a healthy and balanced environment.
The outcome underscores the increasing legal, environmental, and reputational risks that may deter investors in Amazon’s oil initiatives.
Andrew Miller, advocacy director at Amazon Watch, an organization dedicated to protecting rainforests, states that robust local opposition has prevented several multinational oil companies from advancing in Block 64 since 1995.
“The legacy of the Indigenous communities nearby is one of toxic water supplies, social fragmentation, and poverty,” Miller remarked. “The days when oil doesn’t flow are when the community can still depend on the river for their sustenance, just as they always have.”
Despite multinationals pouring millions into developing Block 64 over the years, none have yielded returns, indicating that the sector is now considered a financially burdensome dead-end. However, Miller believes the Peruvian government will continue to explore methods to promote development in Block 64.
“The local community and its allies will stay alert regarding this ongoing project, which has been dismissed several times but continues to resurface,” he added.
– –
Associated Press Climate and Environmental Insurance is supported by various private foundations. The AP retains full responsibility for all content. For details on the AP standards, and a list of supporters and funded coverage areas in collaboration with charities, visit ap.org.
Source: apnews.com