WRITTEN QUESTION E-1582/96 by Wolfgang Kreissl-Dörfler (V) to the Commission (24 June 1996)

Subject: Oil exploration in Peru

Is the Commission aware of the possible negative consequences on the indigenous peoples and the environment of oil exploitation in the Peruvian Andes, especially in the area of the Manu Biosphere Reserve?

Have the activities of Shell and Mobil already had a negative impact on the further development of this Commission funded project?

Has the possible impact of these developments been studied, what has been the result, and how will the Commission approach these companies when a negative impact is likely to occur?

Answer given by Mr Marin on behalf of the Commission (19 July 1996)

The Commission has supported the Manú biosphere reserve in Peru for several years. Initially, the support was channelled through a project with the World wild fund (B7-5041/92-08, 3 years, 640.000 ECU). Recently, the support for the sustainable management of the park was amplified through the agreement on a 7 MECU project with the Peruvian government for five years (B7-5041/95-20). Given this strong commitment to the sustainable management of the area, the Commission is carefully following the ongoing oil and gas explorations mentioned by the Honourable Member.

The Peruvian legislation on exploration and exploitation of hydrocarbon resources aims to prevent environmental social and cultural damage. Exploration and recovery of hydrocarbon reserves must meet generally accepted technical and economic principles, including those relating to the environment. Environmental impact assessments are required for each phase and must include detailed environmental management plans as well as plans for abandoning the area after termination of operations.

As far as the Manú biosphere reserve is concerned, economic activities which disturb the eco-system are strictly prohibited, and access is limited to scientific research by special permit. So far, economic activities outside the reserve, including the development of the hydrocarbon and mining resources in the surrounding buffer zone, have had no impact on the progress of the Manú project. The companies involved will not enter the reserve. This does not of course eliminate the risk of damage in the buffer zone, but on the basis of the information presently available, the Commission does not see a danger from the Manú project.

The Commission has received information from Shell on their activities in the Camisea concession and the environmental impact, especially as regards the appraisal drilling phase. The information indicates measures that will be taken to limit damage to the environment by transport and construction. The Commission will keep informed about the exact nature of the activities of Shell and the other enterprises in the area as well as their impact, especially as regards the operational phase and possible further developments. In its contacts with Shell, the Commission has stressed the importance of consultations with indigenous peoples concerned by the activities.

Ultimately, the sustainable management of the areas concerned is the responsibility of the Peruvian government. Nevertheless, as the Manú project financed by the Community is being implemented, the Commission will analyse the possibilities of sharing its experiences gained in this project with the management of the Camisea concession. In this context, a related experience in the Ecuadorian Amazon can also be mentioned, where the Commission supports a major project on sustainable oil production in tropical forest areas.