Investors Retain 13 Blocks* Four of the six blocks that did not peak corporate interest overlap reserves or proposed territorial reserves | Amazon Watch
Amazon Watch

Investors Retain 13 Blocks* Four of the six blocks that did not peak corporate interest overlap reserves or proposed territorial reserves

July 10, 2007 | Verónica Ortiz | La República

Yesterday, when 16 companies and national and international consortia presented their financial and technical bids for the 19 oil blocks, it did not go unnoticed that the 30 offers were only on 13 of the 19 blocks.

Although Perupetro president, Daniel Saba, noted that the blocks that garnered most investor attention were those with the most available geological information, it is also interesting that some of the six blocks that were not bid on are those that are superimposed with indigenous territorial reserves or proposed reserves, as previously noted by AIDESEP (Interethnic Association for Development of the Peruvian Amazon)

An example of these is Block 136, in the Marañon river basin, which, as per AIDESEP’s critique, is superimposed on the proposed territorial reserve Yavarí Mirim.

Blocks 132 and 138 on the Ucayali basin (which also were not bid on), is superimposed with the Marunahua reserve, in the first case, and with the proposed reserve Yavarí Tapiche and the Isconahua reserve, in the latter.

The same happened with Block 133, on the Madre de Dios river basin, which, according to AIDESEP, is superimposed on the Madre de Dios territorial reserve.

If such is the case, of the six blocks that did not peak interest, four are superimposed on reserves or proposed reserves.

Nevertheless, of the 13 blocks that were bid on, blocks 135 and 137 are superimposed on the Kapanawa Reserve (in the case of both blocks); and the Isconawa Reserve for Block 138.

On the matter, Saba commented that there is no conflict of interest with indigenous communities regarding environmental concerns. “There is not conflict with the communities, (but) it is tru that there is a type of exaggerated propaganda on the part of interested organizations. Everyone knows who they are,” he withheld additional details.

On the opening of the envelopes with the technical proposals, Saba underscored that they are following the rule in working with Amazonian native communities, such that these will benefit from economic projects and will not be left destitute when the resource is completely exploited.

Contracts

It is expected that the exploration and exploitation contracts will be signed in the latter part of the year.

If not, they are in agreement with the executive branch’s proposal to revoke the licenses of those companies that do not comply with employee labor rights. In the case of oil companies, those stipulations are implicitly included in the contracts.

The bidders

A total of 45 companies presented their letter of interest, with 31 qualifying. Only 16 (2 consortia and 14 companies) presented their technical and financial proposals yesterday for 13 of the 19 blocks tendered.

The winning bids will be announced this Thursday the 12th.

The bidders are the CNPC-KNOC-Pluspetrol consortium (China/ Korea/ Argentina), Cepsa (Spain), Hocol (Colombia), Hunt Oil (U.S.), PVEP(Vietnam), Pacific Stratus Energy (Canada), Pan Andean (Ireland, Monterrico (Peru), Petrolífera Petroleum (Canada), PetroTech (U.S.), Plectrum (United Kingdom), Reliance (India), SK (Korea), Samaraneftegas (Russia), Talisman-Ecopetrol (Canada-Colombia) y Vetra (U.S.)

*(Translated from Spanish original by Amazon Watch)

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