Global energy crunch stirs hope of oil reboot in Peru's Amazon

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Global energy crunch stirs hope of oil reboot in Peru's Amazon
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Peru's government wants to ramp up oil production in some of its dormant Amazonian fields as global crude prices soar on supply fears linked to Russia's invasion of Ukraine.

Among the areas prime for a reboot is Block 192, the Andean country's largest - and leakiest - field. Located deep in the Amazon jungle in northern Peru, the block for decades was one of the country's leading oil producers.

Peru imports 80% of its petroleum, gasoline and diesel, a figure President Pedro Castillo is determined to lower. His administration has steered troubled state-owned oil company Petroperu to restart oil production for the first time in decades, though it remains under 1,000 barrels a day. At its peak in 1980, Petroperu's output was about 200,000 barrels a day, a figure that plummeted amid privatizations that saw the company halt production to focus on refining and distribution.

Because Peru's oil fields are small and remote, turning a profit is expensive. Indigenous communities angered by spills have often responded by taking over roads, airports or key oil pipelines. Petroperu's de la Torre said Block 192 was key for Peru, as is a $5 billion expansion plan for the firm's Talara refinery.

Around Nuevo Andoas, the consequences are visible almost everywhere. Reuters traveled to the village in late February, a journey of 639 miles northeast from the capital.

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