Peru's "Lot 67:" Oil Development and Communities

In the past several months, the Peruvian government has been faced with community-related protests in the Amazon region. The underlying reasons for the protests are primarily linked to the exploration and development (or potential thereof) of oil and gas in the region and the resulting impact on local communities.

Two recent articles consider the issues that are at the heart of the protests and the competing interests before the Peruvian government. Put simply, the oil and gas in the Amazon belongs to all the people of Peru. But how should it be developed and what role should local communities play in decision making that will impact the lives of their people.

An article in The Guardian ("Rumble in the Jungle," July 4, 2009) considers whether there are "uncontacted tribes" in the region and the chance they could be harmed by oil and gas development. The article points to some who say there are uncontacted tribes near Lot 67, an area that may hold 300 million barrels of oil, as well as others who say such tribes do not exist.

Meanwhile, The Economist ("Oil and Land Rights in Peru: Blood in the Jungle," June 11, 2009) reports that, "For seven weeks [this autumn in the southern hemisphere] tens of thousands of Amazonian Indians blocked roads and rivers across eastern Peru. They seized hydroelectric plants and pumping stations on oil and gas pipelines to try to force the repeal of decrees facilitating oil exploration, commercial farming, and logging in parts of the jungle." The Economist goes on to say, "Peru has seen many conflicts between foreign mining and oil companies and local people, who complain of environmental damage and/or a lack of tangible benefits from these investments. The conflicts are often resolved only after protests, and sometimes bloodshed."

The relationship between natural resources development projects and the rights and expectations of local communities loom large as societies, governments, and the development industry seek to balance all of the competing interests. Dealing with these relationships is likely to be a, if not the fundamental issue as the natural resources sector looks to the future.