State of emergency for the eighth attack to the North Peruvian Pipeline in 2016

This morning, at the 103 Km of Stretch I of the North Peruvian Pipeline (ON) in the Naranjal Native Community, district of Lagunas, there was a crude leak as a consequence of the eighth attack performed by third parties this year against our facilities. On this matter, our emergency team has already controlled the leak by installing a staple on the pipe and placing containment barriers in the flotation canal.

Given that the situation is negatively affecting the patrimony of the company and the interests of the country, the Board has agreed to declare a state of emergency in the company until it is possible to guarantee the safety and integrity of our infrastructure.

The operation of the pipeline is of national interest by:

• Promoting the development of exploration and extraction activities in the northern forest of the country, were local and foreign companies operate, creating jobs in the area.
• Generating income by canon and royalties for the benefit of the local and regional governments, coming from the above-mentioned activities.
• Supplying crude to the Talara refinery, the same which is now an important modernization process.
• Guaranteeing the supply of fuel in the country.

To ensure the integrity of the pipeline we are:

• Coordinating with the government for the patrolling and supervision of our facilities by the law enforcement forces along the right-of-way where the ONP is installed.
• Hiring a high-technology air video vigilance system (drones), for the detection of elements that affect the integrity of the pipeline.
• Demanding that the competent authorities speed up the corresponding investigation processes, in order to identify those responsible for these dire acts, and that they are given heavy penalties for having attacked the national patrimony.
• Implementing in the shortest time possible the Guardians of the Pipeline program as an integration mechanism with the communities for the protection of our facilities.

The company will continue to carry out its best efforts to move away from this crisis, having as its main objective to have an efficient pipeline in operation, a profitable refinery, and the competitive organizational structure.

The call on all Peruvians to take conscience of the transcendence of the great damage that unscrupulous people have been causing to the North Peruvian Pipeline, which puts at greater risk of the development of the Amazon, and with that, affects the well-being of the communities of our surroundings and the entire country.