Petroperu May Expand Shutdowns as Land-Rights Protests Spread

Source: Bloomberg

Petroperu May Expand Shutdowns as Land-Rights Protests Spread
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By Alex Emery

May 24 (Bloomberg) -- Petroleos del Peru, which shut a 40,000 barrel-a-day crude oil pipeline last week after indigenous protesters seized facilities, said it may halt more operations as land-rights demonstrations spread.

Protests have affected Petroperu’s sales plants in the northern jungle towns of Yurimaguas and Tarapoto, and may force the closure of the 10,000 barrel-a-day Iquitos refinery, the Andean country’s state oil company said today in a statement posted on its Web site.

Petroperu and international oil companies such as Argentina’s Pluspetrol SA halted operations last week after Amazonian indigenous groups blocked roads, oil and natural gas installations in a bid to overturn laws that aim to modify land rights.

The government on May 9 declared a state of emergency in four regions, granting the army greater powers to clamp down on the protests and charged indigenous leaders with insurgency. The government plans talks with indigenous representatives next week, cabinet chief Yehude Simon said yesterday.

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