Market News
23 January, 2024
Peru Declares State of Emergency Due to Oil Spill

On January 22nd, Peru declared a state of environmental emergency along its coastal areas affected by an oil spill from a vessel owned by the energy conglomerate Repsol (Spain). The incident occurred as Repsol’s vessel was unloading cargo at the La Pampilla oil refinery and faced unusual large waves resulting from the volcanic eruption disaster in Tonga, approximately 10,000 km away.

Photo: REUTERS

The oil spill has contaminated 174 hectares of sea, beaches, and natural reserves in Peru. Despite cleanup efforts by authorities, the crude oil continues to spread, reaching up to 40 km from the initial location. The Peruvian government has demanded Repsol to compensate for the damages. Repsol attributes the oil spill to large Pacific Ocean waves caused by the Tonga volcanic event, claiming that the government did not issue any warnings. The company asserts that it has been working to address the incident.

Fishermen from the coastal district of Ventanilla, near Peru’s capital Lima, have gathered outside the La Pampilla refinery demanding compensation for their losses. La Pampilla is Peru’s largest oil refinery, holding over half of the country’s energy market share. The refinery has enclosed the affected areas, but the owner may face fines of up to $34.5 million. Environmental experts estimate that it may take up to two years to completely clean up the spilled oil.

Photo: Daily Sun
Photo: AFP
Photo: REUTERS

Meanwhile, the international community is actively providing relief aid to Tonga in response to the urgent appeal from the Pacific island nation, which recently experienced dual disasters of volcanic eruption and tsunami. New Zealand has announced an increased aid package for Tonga, totaling over $2 million, to provide essential supplies for the affected population and deploy volcanic ash cleanup tools.

The United Nations reports that Tonga has requested urgent assistance, and the organization is closely coordinating with Tongan authorities. The UN expresses particular concern about the safe water access for 50,000 people across Tonga. Additionally, approximately 60,000 individuals involved in agriculture, livestock farming, and fishing are affected by ash fallout, saltwater intrusion, and the risk of acid rain.