3 months after disastrous spill…Peru fishermen can now access emergency fund

Apr 20, 2022 News

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Kaieteur News – Three months after approximately 12,000 barrels of crude was spilled into Peruvian waters – the affected people, mainly fishermen, can now access the emergency fund the government organised for them to receive advance compensation from the culpable oil company.
The advance compensation to the fishermen and others affected by the spill came about as a result of negotiations done by the Government of Peru which is working towards getting the Spanish oil giant, Repsol, to assume the economic impact of the spill.
It was reported that due to the fact that a legal process for compensation to the affected families would take a long time, the Government of Peru got the oil giant to sign an advance compensation agreement.
In order to provide adequate aid for the citizens, the Peruvian government recently ordered the oil giant, to pay an additional sum of US$700 compensation to each citizen affected by the spill.
On April 17, last Peru’s Ministry of Environment (MINAM) announced, via a Facebook post, that the advance compensation is now available for affected citizens.
Kaieteur News had reported that the crude was spilled from one of the La Pampilla refineries, which is owned by Repsol, off the coast of Ventanilla in the region of Lima, Peru.
The spill was reportedly caused by shock waves from an undersea volcanic eruption near Tonga in the South Pacific Ocean. At the time of the undersea eruption, Suezmax tanker, Mare Doricum, was offloading a shipment of Brazilian crude oil at one of La Pampilla refinery’s offshore mooring buoys, and as such, a quantity of the cargo was released.
Following, the devastating oil spill, several Peruvian officials had called for the oil company to offer compensation for the disaster.
The first action taken against the company was by Peruvian judge, Romualdo Aguedo, on Friday, January 28, 2022, who granted an order to prevent four Repsol’s executives from leaving the country. Peruvian media reported that Judge Aguedo imposed an 18-month ban on the grounds of the potential risk that the officials might leave Peru. Among them were: refinery manager, Jaime Fernández-Cuesta Luca de Tena; terminal manager, Renzo Alejandro Tejada Mackenzie; environmental manager, Gisela Cecilia Posadas Jhong and production manager, José Gregorio Reyes Ruiz.
In taking additional steps, Peru’s former Minister of the Environment, Rubén Ramirez on Monday, January 31, 2022, revealed that the government had taken the decision to suspend the company’s hydrocarbon loading and unloading activities. In other words, Repsol’s operation in the country was halted until it can substantially prove that another oil spill will not occur again in its waters.
Subsequently, a fuel shortage in Peru forced the country’s OEFA to lift the suspension on Repsol’s operation temporarily. However, the company was only allowed to continue its operations for 10 days and under supervision from the OEFA. That 10-day period has long elapsed with the Peruvian government stating that it has other alternative sources to obtain fuel.
According to Repsol’s Chief Executive Officer (CEO), Josu Jon Imaz, the clean-up and remediation of the spilled crude is expected to cost some US$65 million.
To date, Repsol has failed to comply with five of the 16 administrative measures issued: identification of the areas affected by the spill; cleanup of affected areas; containment and recovery of hydrocarbons; containment, recovery, and cleanup of hydrocarbons in Natural Protected Areas; and containment and recovery of the hydrocarbon from the second oil spill which occurred on January 15, 2022. As such, the OEFA has so far imposed five coercive fines for a total amount of 2,300,000 soles (US$616, 043).
Moreover, Peru’s current Minister of Environment, Modesto Montoya, has cited the importance of legislative reform to adequately deal with companies after oil spills and to protect citizens.
As the country grapples to recover from what has been described as an “ecological disaster”, the Minister pointed out that the country’s current laws are too permissive with the pollution produced by companies.
Minister Montoya emphatically stated that he believes that Repsol is setting a bad example for the population and other companies, due to the fact that it is not fully complying with its obligations in the clean-up and remediation of the areas damaged by the oil spill.
As the Government of Peru takes action to protect its people and its environment, Guyana in contrast, continues to give American oil giant, ExxonMobil, permission to operate without a guarantee that it would cover the cost for any oil spill that surpasses the capacity of its subsidiaries to pay.
In February, last, ExxonMobil announced that it has commenced oil production at Guyana’s second offshore development area called Liza Phase Two in the Stabroek Block.
Among the oil companies working in Guyana’s backyard is the very oil company –Repsol – that caused the oil spill in Peru.

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