Petroperu will start repairing a ruptured pipeline located in the Peruvian Amazon after the government achieved a deal with an indigenous community that was preventing this job from taking place for almost three months.
“Repairing the pipeline would allow Canadian oil junior Frontera Energy Corp to resume production of some 12,000 barrels of oil per day in a month, the company has said”, you can read in Nasdaq.
This pipeline was used for transporting oil from the Amazon to a refinery in the Pacific coast that belongs to Petroperu. It had been offline since last November “when Petroperu said members of the indigenous community of Mayuriaga ruptured it in a dispute over local elections and refused to let it enter a remote area for repairs”, according to the aforementioned media.
Last Wednesday a team of workers from Petroperu traveled to the pipeline to begin repairs.
“The impasse between the government and the community had halted Frontera Energy's output from Block 192 and cost the company $10 million US dollars. The company called for the government to solve the dispute earlier this month, saying it was rethinking its interest in investing in Peru in the long-term”, Nasdaq explained.