Peru's state-run oil company failed to attract bids to develop oil fields that overlap the territories of several indigenous peoples, prompting celebrations by communities and environmentalists on Friday.
The plot of land known as Block 64, which overlaps with the ancestral territories of Achuar, Wampis and Chapra countries, has long been the focus of Indigenous resistance.
The failure of Petroperu's bid on Thursday hit plans to expand oil production in the region.
“Of the very hard work we've been experiencing, it's great news – relief, but we're still on our alert,” Olivia Bisa Tilco, president of the Chapla State's Dominant Territory Government in Loreto, Peru, told The Associated Press over the phone.
Petroperu told the Associated Press in a written statement that some companies were interested in Block 64 but withdrew at the very end due to internal strategic changes rather than external pressure.
The company denied the role of Indigenous opposition and claimed it was urging communities to support oil development and launch operations. He also said the block has the necessary community approval, known as a social license. This is considered important for multinational oil and gas projects to proceed without conflict.
Since 1995, Indigenous groups have been strongly opposed to oil development in the region, blocking multiple businesses due to environmental and rights concerns. In 2022, Petroperu managed Block 64. This is known as an oil concession that granted the government the right to explore and extract oil within a particular territory.
¨It's been a fight since the Peruvian state (from Indigenous communities) granted concessions without consultation or consent. For over 25 years, we have been fighting and resisting defending the right to live in a healthy, balanced environment.
The results highlight the growing legal, environmental and reputational risks that will block investors from Amazon's oil development.
Andrew Miller, advocacy director at Amazon Watch, who works to protect rainforests, says that strong local opposition parties have stopped several multinational oil companies from developing Block 64 since 1995.
“The history of the sister indigenous communities in nearby oil blocks is toxic water sources, social division and poverty,” Miller said. “The days when the oil doesn't flow every day are the days when they can still use the river for their nutrition, as they always have.”
Miller says that despite the multinationals invested tens of millions of dollars in the past to develop Block 64, none of them saw returns, suggesting that the industry is now considered a costly financial dead-end. Nevertheless, he believes the Peruvian government will continue to look for ways to encourage the development of Block 64.
“The local community and its allies will remain vigilant about this zombie project, which has been killed many times, but is always trying to get back from death,” he said.
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