Summary Move came amid a 48 hour strike in the region where the oil field is located
LIMA (AFP) - Peru s Congress has awarded state oil company Petroperu rights to develop the country s largest oil field, overriding a contract previously awarded to a Canadian company.
Lawmakers voted by an overwhelming majority in favor of the action late Thursday, despite the government s strong objections.
Energy Minister Rosa Maria Ortiz warned that breaking the contract with Canadian Pacific Exploration and Production was "unconstitutional."
"It s a terrible international message that has grave consequences in terms of the investment climate in Peru," she said.
The move came amid a 48 hour strike in the region where the oil field is located, organized by activists opposed to the contract awarded to the Canadian company.
The field, known as Lot 192, accounts for 17 percent of Peru s crude production.
The Canadian company was supposed to take over operations at the field for a two year period beginning August 30, replacing Argentina s Pluspetrol, whose 15 year concession was expiring.
According to the government, Petroperu, which has only refining and marketing operations, lacks the financial wherewithal to take on exploitation of Lot 192.
Lawmakers who voted in favor of putting Petroperu in charge contended that the state company would be a better steward of the region s environment and relations with its indigenous communities than a private company.
The congressional action was hailed by indigenous groups in the northern region of Loreto, in Peru s Amazon basin, where the oil field is located.
