Peru cancels five offshore oil project contracts with Tullow

Peru cancels five offshore oil project contracts with Tullow

Peru’s government has cancelled five offshore contracts with UK developer Tullow Oil on the grounds that the previous regime, which approved the deals, had not conducted proper consultations with nearby coastal communities, according to Reuters.

New national President Martin Vizcarra undid the contracts signed by his predecessor Pedro Pablo Kuczynski who was chased out of office under a cloud of corruption.

Kuczynski had signed decrees authorizing the offshore deals shortly before stepping down.

Vizcarra was Kuczynski’s vice president but is trying to distance himself from his former boss.

Fishermen and environmentalists are happy with the decision, while Tullow said it is considering its next move.

The company had been preparing an initial investment of $200 million on the blocks off Peru’s northern coast.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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