In January 2022, crude oil began leaking into the Pacific Ocean near the site of La Pampilla, one of Peru’s largest oil refineries just north of the capital Lima. Discharge pipelines had ruptured while a tanker was unloading offshore of the refinery, which is run by a local offshoot of Spanish petrochemical company Repsol. Before it was brought under control, an estimated 10,396 barrels had escaped. What is now often called Peru’s worst ecological disaster of recent times was only just beginning.
Unfortunately, oil spills have been increasing in Peru. Between 1997 and 2021, there were 1,002 spills recorded. Between then and May 2023, 458 more spills were recorded. Of these 1,460 spills, 609 occurred along the coast, where they primarily impact wildlife and traditional fishing communities.
The government imposed millions of dollars of fines on Repsol for its allegedly inadequate response to containing and cleaning up the spill. But the company is challenging those fines in court and has yet to pay over half of them.
Given the frequency of such incidents, one would hope that the Peruvian government would have developed and implemented fair and transparent ways of estimating the impacts of spills and compensating victims. But the true cost of oil spills, including from La Pampilla, on the lives of Peruvians who depend on the sea has never been comprehensively assessed.
Disappearing animals, disappearing incomes
To fill this information gap, and give those impacted by the spill in La Pampilla a voice, last year we interviewed 41 members of Ancón’s small-scale fishing community. Oil from the spill had drifted north and accumulated in the bay of Ancón, which is a popular beach holiday destination and fishing hub. Peruvian silverside, Peruvian croaker, octopus, crab and squid have long been fished there.
We found that the impact of the spill had been felt along the entire value chain of the fishing community. From the fishers themselves, to those who unload the catch, to the women who fillet and process it. From those who take products from the dock to the marketplace, to traders in wholesale and retail markets, to the restaurants that depend on these inputs. Everyone said their income had decreased.
“We used to work harvesting crabs… There were big crabs with big claws… and now there aren’t any,” said one fisher. (All interviewees spoke on condition of anonymity.)
“Every March and April, Ancón was where the squid came to spawn… Since the oil spill happened there are no squid in Ancón,” said another.
Some even described a total halt in their earnings for several months, as fishing activity had been paralysed and they had no other means of making a living. In the last two years, many said they have been falling into debt after taking out loans just to make ends meet. Some also had to rebuild their lives by finding different work or moving out of Ancón.
Beaches without tourists
Ancón’s beaches have attracted holidaymakers for decades, generating vital work for people who rent out umbrellas, sell snacks, operate taxis, run accommodation, and work in restaurants.
After the spill, several beaches had to be closed. A summer that promised great job opportunities after years of restrictions due to the Covid-19 pandemic turned into a summer of unpaid debts and dashed hopes. Tourism in Ancón has still not recovered from the spill. One fisher said: “I have a tourism boat as well, but people no longer come to the beach like before. They are afraid and say that Ancón is contaminated.”
The impact on the physical and emotional health on Ancóneros has been significant, according to the testimonies we collected.
Oil on the beaches caused dizziness in the immediate aftermath of the spill, we were told. Fishers who came into direct contact with it while involved in the clean-up reported skin problems. They say they fear the long-term consequences of their exposure to crude, which studies have linked to numerous health problems.
In many cases, economic necessity has forced fishers to continue to sell seafood from waters they know is still contaminated. That oil rises from the ocean floor to the surface every time there are strong currents has been shown in government monitoring. The risk of harm is still very real for consumers, fishers and their families who eat the catch.
Many of those giving testimonies for our study were themselves ill or spoke about children and adults they knew who have suffered from ill health after consuming fish they suspect is contaminated. Often the fish smelled unusual, but a lack of alternative protein forced them to eat it anyway, they said. Some said they had severe stomach pain and had to go to hospital after eating affected fish. To date, no study from the government has been done on the safety of consuming local fish.
Added to this is the emotional impact of having seen their second home – the sea and beaches – polluted, depleted in life and strewn with dead animals including sea lions, sea otters, and pelicans. Some Ancóneros still say they can no longer take their children to play in the sand.
“Before, you would just go and get in the sea without worrying, and that was it. But now, that fear [of contamination] is always there,” one local seaweed gatherer said.
Paying out and paying back
The diversity of affected people has been ignored in Repsol’s compensation process, the respondents said. Some said that less visible fishers, such as female seaweed harvesters, have received nothing.
Many of those who did receive compensation told us it fails to match their total losses. Today they live in poverty, they say, compared with previous years when the resources of the sea allowed them a dignified and peaceful life.
“Even today it is not enough. Repsol claims to have supported the fishermen, but the reality is different,” said one interviewee.
In our opinion, the case of Repsol in Ancón shows not only the multiple impacts on the community, but also negligence on the part of the company. The company took almost two weeks to start the clean-up after the spill and it has been fined by the government, which has cited numerous failures in its response to the disaster.
Its clean-up methods were rudimentary, and the oil slick spread to an area equivalent in size to 16,000 football pitches. Repsol meanwhile has become an official sponsor of the Peruvian national football team.
Spills will continue to occur with impunity if the state does not demand more from companies operating in Peru
The company made EUR 1.8 billion in global profits in 2024. It pays 30% tax on income in Peru. In contrast, Norway charges up to 78% and companies continue to operate there. Why don’t we in Peru demand more, when the economic impacts of such disasters are so high?
Oil spills take years to remediate. There is still no officially approved plan for doing this in Ancón, and when the oil rises to the surface from time to time, it affects the entire food chain. How much longer must the affected people of Ancón, Ventanilla, Santa Rosa and Chancay wait for fair compensation and effective remediation?
Spills will continue to occur with impunity if the state does not demand more from companies operating in Peru. The state must assume its responsibility to protect the human rights of its citizens and guarantee their well-being. It should do this by applying appropriate sanctions in situations like these, conducting strict auditing of how companies respond to such crises, and ensuring that affected populations are fairly compensated.
The right to a healthy sea, the right to decent work, the right to health, the right to food. These are examples of rights that continue to be infringed by the Ancón spill. It is time for us as a society to ask ourselves what is worth more: the right of a company to profit, or our rights to a quality life?
Editor’s note: In a statement in January, Repsol said it had submitted all rehabilitation plans in 2023 and they are under evaluation by the government. It also said that it has been undertaking cleanup and monitoring which “ensure adequate conditions on the beaches and in the sea”. Laboratory analysis proves the shoreline “meets national and international environmental quality standards, making it suitable for any productive and recreational activity”, it added. More than 10,500 people have received compensation, it said.
