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Indian protests threaten northern Peru oil output

19 Oct 2006 16:52:41 GMT
Source: Reuters

LIMA, Peru, Oct 19 (Reuters) - Peru Indians armed with bows, arrows and rifles continued to block oil production at Argentine crude producer Pluspetrol on Thursday as the government warned of fuel shortages in the jungle region.

Pluspetrol shut down its 50,000 barrel-per-day oil output in Peru's northern jungle on Tuesday after Achuar Indians took over four oil wells, complaining that crude production is damaging the environment.

"If this continues, the region won't have fuel for vehicles or for electricity generation," Energy and Mines Minister Juan Valdivia told CPN radio. The Loreto region is home to Peru's largest jungle city, Iquitos, a popular destination for foreign tourists on visits to the Amazon basin.

Health ministry official Fausto Roncal told Reuters last week that tests showed environmental damage close to oil wells was killing fish, the nutritional source of the communities.

Pluspetrol, which was not immediately available for comment, says the damage is from old, abandoned oil wells and not from its operations. The company says it is working with the government and local communities to clean river water and develop projects such as fish farms.

The Indians in a statement called for negotiations with the government in Lima to stop "the 1.3 million barrels of contaminated water pouring into the rivers every day."

Valdivia said the government was willing to hold talks with the Indians to hear their grievances, but not while they were armed. "We can't do that while they are threatening us with rifles, arrows and wearing war face paint," Valdivia said.

Pluspetrol is one of Argentina's biggest natural gas producers and leads a consortium pumping gas from Peru's huge Camisea field, one of the biggest reserves in South America.

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Last updated:Thu Oct 19 16:54:07 2006