• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 34 mins Satellite Moons to Replace Streetlamps?!
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 12 hours EU to Splash Billions on Battery Factories
  • 16 hours U.S. Shale Oil Debt: Deep the Denial
  • 24 hours The Balkans Are Coming Apart at the Seams Again
  • 8 hours Owning stocks long-term low risk?
  • 11 hours The Dirt on Clean Electric Cars
  • 1 day Uber IPO Proposals Value Company at $120 Billion
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 2 days U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 7 hours The end of "King Coal" in the Wales
Oil Prices Subdued, But For How Long?

Oil Prices Subdued, But For How Long?

Oil prices may have closed…

Goldman Sachs: This Is The Next Big Risk For Oil

Goldman Sachs: This Is The Next Big Risk For Oil

Goldman Sachs commodities expert Jeffrey…

Petroperu To Restart Disaster Oil Pipeline In 2017

Peru Pipeline

Petroperu will restart early next year the operation of its four-decades-old crude oil pipeline, which has caused several major leaks in the Amazon, after completing extensive repairs. The company also said it will seek support from Amazonian communities to help protect the pipeline from further vandalism.

It is vandalism that Petroperu blames for the spills—over 7,000 barrels just this year—along the 687-mile pipeline that supplies crude to Peru’s state-owned oil refining and transportation company’s refinery on the Pacific coast. Vandalism was one reason for the spills, according to the country’s environmental regulator, OEFA. Another was poor maintenance, which sparked massive protests from communities living in the Amazon jungle, which the pipeline crosses for most of its course to the Pacific.

The regulator fined Petroperu US$3.5 million for the latter, saying the company was guilty of “repeated and systematic failure of its environmental obligations.” In an interview with Reuters, Petroperu’s president, Augusto Baertl, said that making the company more environmentally responsible was a top priority, but added that it had a problem in this respect.

Although Petroperu is trying to get the communities on board, they do not see Petroperu as an ally, and are unwilling to cooperate. However, their support is necessary if Petroperu is to protect the pipeline from acts of vandalism, especially since, according to Baertl, some of these acts may well have been committed by members of these communities as an attempt to get a job in the cleanup operations.

Initially, the pipeline, which was shut down in February, was to remain so for a year, while Petroperu replaces the damaged parts it was ordered to replace by OEFA. Prior to the shutdown, the pipeline produced a relatively small amount of crude—15,000 bpd—but nevertheless, stopping the shipments has affected Peru’s economy, as it necessitated the suspension of production at two oilfields.

Besides the repairs of the pipeline, Petroperu’s plans under the new president also include a US$4.8-billion expansion of the Talara refinery, which is currently in construction. Baertl did not rule out venturing into production, but said for the time being that Petroperu had neither the workforce nor the funds to do so.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News