Indigenous groups in the northern jungle of Peru on Monday began to lift a 13-day blockade of oil wells after the government agreed to take steps to protect the environment in the remote area. Hundreds of Achuar Indians blocked access to the oil field operations of Argentina s Pluspetrol starting on Oct. 10, in a protest that affected half of Peru s crude production.

"This morning they are leaving the wells and we are going to sign the agreement. Most of their demands were met," said state ombudswoman Beatriz Merino, who mediated talks between the Indian groups and the government. The government promised that native communities in the area would receive 5 percent of a regional development tax paid by mining and oil companies, and would be tested to make sure they aren`t suffering pollution-related illnesses.

Under the agreement, Pluspetrol will conclude in 2007 and 2008 projects to re-inject polluted water into oil wells. "The Achuar brothers have stayed to participate in the (signing) ceremony, but they`ve begun moving their things and taking their camps apart," said Geanina Lucana, a member of the technical team of the Federation of Native Communities of the Corrientes River.

Premier Jorge del Castillo said the city of Iquitos, in the Loreto region on the border with Ecuador, had been in danger of running out of fuel during the protests. "Peru has lost millions (of dollars) since it has been almost two weeks without exploiting petroleum in the area and the city of Iquitos was at the edge of collapse ... This is a situation the government would not have allowed," Del Castillo said.

Under the agreement Pluspetrol must donate 40 million soles ($12.4 million) for a health plan and 4 million soles ($1.2 million) a year to build an airport in the area. The protesters had demanded the government not grant any more oil concessions in the area but the government did not agree to that in the resolution to be signed on Monday.

"It`s a good agreement because there are signs that the area has been polluted not just now but for 35 years and the solutions have not been as rapid as they should have been," Fernando Rospigliosi, a political analyst and former cabinet minister, told Reuters. Rospigliosi said that while Pluspetrol was not responsible for all the pollution in the area, the company "continued sending the water that comes from the wells into the rivers."

Pluspetrol, which said it was losing $2.4 million a day in sales after shutting down operations last week, said on Sunday it would gradually send people back to its installations at the oil field.
(Planet Ark, 24/10/2006)
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