Perenco holds a 50% interest in Block 67 in the Marañón Basin, located in the north east of the Loreto region, along with the Vietnamese national company PVEP. To date, three discoveries have been made, giving a total of 200 million barrels of 2P certified reserves. Piraña and Dorado fields have been put on stream in November 2013 and today deliver a crude production of 6000 bopd.
Perenco in Peru
Perenco's activity in Peru is key to the country's future oil production (the Block 67 first oil was the first new oil field put in production in the country for the last 30 years) and for the Maranon basin by having a new integrated production hub in the region designed as per the latest international standards.
This groundbreaking and innovative project contemplate the full re-injection of the production water and rain water in contact with production facilities, the re-injection of the drilling cuttings and the river crossing using directional drilling. The project utilized advanced technologies such as casing drilling, centrifugation of water-in-crude, zaplock for pipeline, and innovative and reliable infrastructures to develop the heavy crude reserves of the Maranon Basin.
The approved development plan includes the drilling of 190 directional wells from 18 platforms, the construction of processing facilities, and the installation of buried pipelines to enter the existing main Oleoducto Nor Peruano pipeline at Andoas, 200 km from Block 67.
A dedicated communities' development plan has been integrated into this project from the outset and a continuous dialogue with the communities on site is ongoing, as part of our transparency commitment and the social and environmental development act signed with these communities.
Many local, regional and international contracts have been put in place to ensure compliance with the highest international standards. This includes a full rivers ecosystem study with the IIAP (Instituto de Investigaciones de la Amazonia Peruana).
The development of Block 67 was declared a project of national importance in April 2009.
Many local, regional and international contracts have been put in place to
ensure compliance with the highest international standards.
The compact and integrated production and drilling facilities have been designed to meet the latest international standards. Since its commencement Block 67’s development has incorporated the full re-injection of the production water, the re-injection of the drilling cuttings and the river crossing using directional drilling. Given the sensitivity of the area, the design involves several advanced technologies such as casing drilling, centrifugation of water-in-crude, zaplock pipelines, and an innovative and reliable infrastructure to develop heavy crude reserves. Most of these technologies were put in place by Perenco for the very first time in Peru.
In 2015, Perenco plans to stabilize the production in a challenging crude price environment, with a focus on optimizing the diluents transportation, as well as production and maintenance activities. With the experience of over a year of operations, the main objective is to now deliver the production with stronger cost efficiency, whilst maintaining safe operations and our commitments to the government and our partners. The company is close to achieving 4 million man hours without LTI, showing the high level of safety awareness demonstrated thorough the entire operation.
A dedicated communities’ development plan has been integrated into this operation from the outset and a continuous dialogue with the local communities continues, as part of our transparency commitment and the Social and Environmental Development Act signed with the local populations.
To further enhance the potential of Block 67, Perenco in October 2014 completed the acquisition of 55% of Block 39, which circles most of Block 67 perimeter. Exploration studies have been resumed to define the best development strategy – with a focus on operational synergies with Block 67.
Since 2008, the Buena Vista Community
and Perenco Peru have completed
some exceptional projects.
- The Buena Vista Community
- Non-Contacted Tribe Claim
The Buena Vista Community is a small village in one of the most remote areas of the Peruvian rain forest, which can only be reached by a six day barge trip from Iquitos. In this pristine forest, the community has to deal with poor access to education, minimal health care services and inadequate job opportunities.
However, Buena Vista is extremely keen to enhance its economic and social credentials by becoming an active participant in the local market and between other communities.
In 2008 when Perenco Peru started activities in Block 67, 53 km from the border of the community, a partnership was established to enable BuenaVista to achieve its vision of development. By working across many areas including education, health, agriculture and breeding, employment, environment protection and empowerment the company has helped Buena Vista on its journey to alleviate poverty in its community.
Since 2008, the Buena Vista Community and Perenco Peru have completed some exceptional projects.
Old deforested areas have been replanted with vegetable and fruit crops, and families have been trained in modern techniques for cultivating minor species. Currently, these are for their own consumption and trade, broadening the range of food available to consume locally whilst improving their nutrition.
A Perenco sponsored clinic barge named Pastaza visits the community every two months to provide a healthcare service. Currently, healthcare professionals from the Regional Government of Loreto deliver this service and educate the community on a range of healthcare issues.
The company is offering employment opportunities on Block 67. The challenge of helping Buena Vista is supported by both Perenco Peru and the community itself. The end goal will demonstrate the commitment of both parties to ensure the clear benefits are sustainable.
Evidence can only be established when there is a coherent array of verified facts established through a scientific multi-disciplinary methodology.
Since at least 1995 when the Block 67 was awarded, there has been extensive human activity in the area of Block 67. Despite this, there has been no evidence of non-contacted tribes within Block 67. A first extensive seismic survey was conducted in 1997. This involved a team of several hundreds of local employees walking the length and breadth of Block 67 over several months. It also involved extensive aerial coverage of the Block 67 area. At that time the Block was eight times larger than it now is and today, Perenco's focus is on an areas less than 0.5% of the current reduced area of the block.
Whilst the closest community to Block 67 is located 30 km away (see B67 map of the region and B67 project influence area), communities living from between 30km and 60km from the Block 67 are known to use the area in order to hunt, gather food and collect wood. Furthermore, the army also regularly patrols this region which is near the borders with Ecuador and Colombia.
Despite all this activity, no evidence of non-contacted tribes was reported in the Block 67 area.
In Peru oil and gas activities are today strictly regulated by the Hydrocarbon Law. This regulatory regime controls all aspects of oil and gas activities, in order to limit socio-environmental impacts. The regulation imposes the rules under which oil and gas activities have to be conducted in non-contacted.reserves. (see Peru useful links).
Upon acquiring the rights to explore and develop Block 67 early in 2008, Perenco commissioned a comprehensive study to establish the possibility of indigenous human activity in the area. The study involved a panel of 24 experts from the following institutions:
Daimi, a consulting company with expertise in socio-environmental matters with considerable experience in this area in Peru and Ecuador Indepa: the governmental body in charge of the protection of the indigenous population of Peru The University of San Marcos in Lima The Amazon University of Loreto in Iquitos. The 4 institutions multi-disciplinary study concluded the following:
The field work conducted shows that there is no physical evidence of non-contacted tribes in the Block 67 area. There is no indication of transhumance, which is a determining factor for the existence or non-existence of non-contacted indigenous populations. There is no sign that shows the subsistence activities in the jungle of a non-contacted tribe (hunting tools, huts, corn fields...).
Aidesep, an NGO formed in the 1980s, did not oppose the oil and gas activities in Block 67 for an initial 12 year period. It does not oppose oil and gas activities in blocks overlapping several existing non-contacted tribe reserves. In 2003 Aidesep presented a request for a non-contacted tribe reserve in the Block 67 area, the "Napo Tigre proposal". In 2005 Aidesep produced a report called "Aidesep Expediente Tecnico (part I, part IIa, part IIb, part III )" for this request and in 2007 Aidesep presented a claim rejecting all oil and gas activities in Block 67.
Indepa rejection report
Indepa is the Governmental body in charge of the protection of indigenous populations. A special commission, led by Indepa was created in March 2009. The Commission is in charge of the evaluation of non-contacted tribes reserve proposals. The reserve proposal was dismissed by the Indepa technical report issued by the Commission on 24/06/09 on the grounds that no scientific evidence of the existence of non-contacted tribe in the area had been presented by Aidesep.
Perenco has won in two instances a claim presented by Aidesep to block all oil activities in their proposed Napo Tigre non-contacted tribe reserve. An extract of the verdict states: "evidence presented by Aidesep does not demonstrate the existence of indigenous tribe in voluntary isolation in the blocks 67 and 39."
Both verdicts declared the claim of Aidesep to be groundless (First instance verdict / Second instance verdict).
A similar claim was filed in June 2008 by Orpio, a subsidiary of Aidesep. In this instance a public hearing was held in July 2009, which Orpio did not attend, nor did they request a different day to present their case to the Judge. In February 2010, the Superior Court dismissed the claim as void of grounds. Orpio has not appealed within the term granted by law, which means that they have accepted the sentence (see sentence attached).
Finally, in June 2010, in third and final instance, the Constitutional Court unanimously resolved to declare "...UNFOUNDED..." the claim filed by Aidesep given that "(...) the existence of the community in voluntary isolation or uncontacted has not been demonstrated (...)".
On the subject of non-contacted tribes, an article published in the French newspaper "Liberation" sets out some further information on the issue. The respected Peruvian anthropologist, Carlos Mora, has produced notes on the Aidesep "Expediente Tecnico".
Finally, although there is no evidence of the existence of non-contacted tribe in the Block 67 area, and at the request of the authorities in charge of approving the Environmental Impact Studies, we are applying, through the incorporation of an Anthropological Contingency Plan, precautionary measures similar to the ones used in different cases where, to the contrary of our case, evidence of the existence of non-contacted tribes might have been accepted.
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