Rise of the Pastaza river caused fissure in the North Peruvian Pipeline

With regards to the presence of oily stains last May 25 in the Pastaza River, height of Km 12 of the North Branch Pipeline (ORN), near the district of Andoas, Datem del Marañón province, Loreto region, PETROPERU informs public opinion what:

1. The results of the bathymetry conducted by the Costa Rican company Mattech have determined that a sector of approximately 9 meters of pipe is exposed on the right bank of the Pastaza River due to the atypical rise of its flow, a fortuitous event that caused a crack in the pipeline. It should be noted that the pipeline, at the subfluvial crossing with the Pastaza River, was approximately 2 meters below the bottom (bed) of the river, and was uncovered by the strong current of the river.
2. According to news published in Ecuador, on May 25 there were intense rains that caused the overflow of the Pastaza River (Bobonaza River on the Ecuadorian side), forcing the Ecuadorian army to evacuate the families of 9 communities due to the high flood of said river.
3. PETROPERU, upon detecting the presence of oily spots on May 25, immediately activated its Contingency Plan suspending the ORN pumping and closing the valves located on both banks of the Pastaza River. It should be noted that no oil spots have been observed in the river.
4. Currently, PETROPERU has the specialized service of the companies Techint, SNC Lavalin and CORPESA for the repair of the pipe, Mattech, carrying out the bathymetric studies, Kanay Seché Group for the cleaning and remediation of the areas of palisades with spots oily and ERM for social and environmental assessment in the communities.
5. Although PETROPERÚ is taking immediate actions to carry out the work in the operational, social and environmental aspects, the community of Andoas has today impeded the repair, cleaning and remediation tasks, which have had to be paralyzed by the violent behavior of the community.
6. Since the beginning of the incident, PETROPERU has held constant dialogues with the authorities of 17 communities of the Andoas district. Likewise, in view of the concern of the residents, it is preventatively transferring 1,546 boxes of bottled water and is supporting the integral logistics of a commission of the General Directorate of Environmental Health (DIGESA) and the National Program for Rural Sanitation (PNSR) in charge of evaluating the water quality provided by the Potable Water Treatment Plants (PTAP) installed in the area. The supply of bottled water will last, as a baseline, until DIGESA delivers the results of this evaluation, on June 18.
7. In parallel, and as part of its social responsibility policy, the Company will conduct free medical days, with delivery of the required medicines, to the communities of the district. Likewise, the delivery of school supplies for students of the schools in the area has been scheduled.
8. PETROPERU is in permanent coordination with the monitoring and supervising agencies, whose technicians in the area carry out the corresponding evaluations. Likewise, PETROPERU has been permanently reporting the progress and results of the investigations to the community, regional and national public opinion.
9. PETROPERU will continue to deploy the necessary efforts to repair the pipeline in the shortest possible time, safeguard the safety of the surrounding communities and protect the environment. Therefore, it invokes the authorities of the community of Andoas to put down their measure of force and allow the restart of repair, cleaning and remediation activities in the area.

COM-016