I don’t think resuming production ASAP is a priority right now. I believe it is critical, like Petrotal stated, for the Peruvian government to establish a dialogue with the natives in the area and come up with a solution to resolve conflicts. Petrotal is currently caught in the conflicts, and from my perspective, Petrotal is an innocent bystander.
Once the government and the natives resolve their conflicts and establish prolonging peace, Petrotal inevitably will do very well. We can revisit their netbacks, tariffs, and operating income, and see that they will be highly profitably with sustained production.
After I wrote the draft of this post, looks like the situation is already improving!
The approval of the Gap Closure Plan for the population in the oil field of the provinces of the Loreto region by the Central Government is a positive measure that will contribute to improving the quality of life of populations that have been postponed for decades and social peace, affirmed the National Society of Mining, Oil and Energy (SNMPE).
The preparation of this plan to close social gaps – he noted – was the result of an open and transparent dialogue between representatives of central, regional and local governments, indigenous organizations and oil companies.