Petroperu says protests shut oil pipeline in Peru

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LIMA | Fri Aug 15, 2008 12:38am BST

LIMA Aug 14 (Reuters) - Peru's state-run energy company said on Thursday it had stopped running its oil pipeline in northern Peru because of protests, forcing its main refinery to work off inventories.

The stoppage by Petroperu started on Tuesday after some 500 indigenous people, angry at recent laws passed to promote investment in the Amazon, began a protest. Gas and oil exploration has angered many indigenous and environmental rights groups.

Earlier this week, protesters upset by the same laws forced another energy company in the country to stop work on one of its lots in the Camisea natural gas field in southern Peru. That company, Pluspetrol, has said gas output in Peru has not been impacted.

Cesar Gutierrez, president of Petroperu, told a group of reporters: "As a precaution we are not operating."

Petroperu, which refines, transports and sells petroleum and gas, runs the Norperuano pipeline that moves crude oil from the Amazon jungle to the Talara oil refinery on the northern coast.

"We have reserves for 10 days still," Gutierrez said.

The pipeline pumps some 27,000 barrels of oil a day.

DIESEL IMPORTS UP

Separately, Gutierrez said Petroperu had doubled its imports of diesel to supply two electric generators recently hit by shortages.

In the last two weeks, Peru has experienced two blackouts as spiking demand, a shortage of rains and poor infrastructure have combined to crimp power supplies.

"This month, we have doubled our diesel imports from 6,000 barrels a day to 12,000 barrels a day ... to cover a decrease in (natural) gas," Gutierrez said.

Peru has huge natural gas reserves, but there is just one pipeline that moves it from the Camisea field to the capital Lima, and it is already operating at full capacity.

Fewer rains this year have forced Peru to rely less on hydroelectric power, and more on power generated by natural gas or other energy sources like diesel.

Petroperu's principle competitor in Peru is Spanish energy firm Repsol-YPF (REP.MC). (Reporting by Teresa Cespedes, Writing by Dana Ford; Editing by Braden Reddall)

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