Output at Peru's top oil block suspended by indigenous protest

Sun Sep 13, 2015 8:07pm EDT
 
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LIMA, Sept 13 (Reuters) - Output at Peru's top oil block was halted by an indigenous protest over environmental concerns, a tribal leader told Reuters on Sunday, adding that production installations had been taken over by protesters to force talks with the government.

Tension in Peru's Amazonian region have increased since last month when Pacific Exploration and Production Corp was awarded a two-year service contract to keep oil flowing from block 192 after a 30-year concession failed to draw any bids in an auction last month.

"This protest is for an indefinite period of time," said Carlos Sandi, head of the Feconaco indigenous community federation.

Daily production from block 192 in the region of Loreto is now about 12,000 barrels, a level Pacific has said it could ramp up. Slumping crude prices and disputes with indigenous communities have sapped investor interest in the block. (Reporting by Ursula Scollo; Editing by Bill Trott)