Peru gives green light to new pipeline from Amazon

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Peru has approved construction of an oil pipeline in the north of the country by a subsidiary of the Franco-British company Perenco, the Energy and Mines Ministry said Friday.

The pipeline, which is expected to cost some $359 million and extend for 207 kilometers (129 miles), will stretch from the central province of Maynas to the Amazonian region of Loreto.

Perenco announced in 2009 that the company would invest $2 billion in Peru.

Peru envisions a sharp increase in hydrocarbon production by 2015 in order to reach a goal of 400,000 barrels per day from crude oil and liquefied gas.

The northern Amazon is one of the major hydrocarbon repositories among the Andean countries. Oil companies active there include Brazil's Petrobras, Repsol-YPF from Spain and Hunt Oil from the United States.

© 2011 AFP

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