{"id":50010041,"date":"2017-11-22T07:00:28","date_gmt":"2017-11-22T07:00:28","guid":{"rendered":"https:\/\/stage.dialogochino.net\/?p=10041"},"modified":"2023-01-25T15:22:22","modified_gmt":"2023-01-25T15:22:22","slug":"10041-oil-monkeys-and-guerrillas-chinese-companies-face-problems-in-the-amazon","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/forests\/10041-oil-monkeys-and-guerrillas-chinese-companies-face-problems-in-the-amazon\/","title":{"rendered":"Oil, monkeys and guerrillas: Chinese companies face problems in the Amazon"},"content":{"rendered":"
Read in Chinese\u00a0\u4e2d\u6587\u7248\u672c<\/a><\/h6>\n

This is the sixth article in a special series examining\u00a0China\u2019s role in promoting peaceful and sustainable development in Colombia in the context of the peace process<\/em><\/p>\n

The Andes mountain range runs along the western fringe of South America like a giant windbreak. Inland, to the east, gentle plains give way to dense forest and eventually the vast Amazon rainforest. One tenth of the world\u2019s known species live here, and the respiration of hundreds of millions of trees give it the name\u00a0\u2018the lungs of the world\u2019.<\/p>\n

At the foothills of the Andes on the northern edge of the Colombian Amazon lies the small border town of Florencia. Florencia, the capital of Caquet\u00e1 province , is one of the mountainous country\u2019s gateways to the rainforest. In the central square, nearby palm trees stand tall against a backdrop of distant mountains.<\/p>\n

On June 8, 2011, four Chinese engineers were kidnapped by armed men 150 kilometres north-west of here, in a place called San Vincente del Cagu\u00e1n, and held captive deep in the mountains. The four were employed by a company subcontracted to Emerald Energy, a subsidiary of China\u2019s Sinochem Group. The kidnappers were members of FARC, Colombia\u2019s radical leftist guerrillas. Since commencing armed struggle against the Colombian government in 1964, FARC has used kidnapping and the drug trade to control territory outside the reach of the Colombian government and attempt to achieve political aims it says represent the grassroots population. Statistics show that 220,000 Colombians have died and around 7.3 million been displaced during the 52 year conflict \u2013 a heavy toll for a country with a population of only 48 million.<\/p>\n

In the then FARC stronghold of Caquet\u00e1, Chinese oil workers found themselves tied up in a civil conflict in a foreign land. In November 2012, after 17 months in captivity, the four workers were freed \u2013 not because of a ransom payment or daring rescue, but because of a fundamental political change: In October 2012, FARC and the government had started historic peace talks, and the release of the remaining foreign hostages was a symbol of good faith.<\/p>\n

Four years later the country witnessed another historical change.<\/p>\n

\"\"
Photographs of FARC forces in Caqueta on display at the National Museum of Colombia. Image: Ma Tianjie<\/figcaption><\/figure>\n

A historical peace \u2013 and business \u2013 opportunity<\/h2>\n

On November 30, 2016, after four years of talks, the two sides reached an overall peace agreement after the rejection in a referendum the previous month and the renegotiation of a new deal with significant amendments. After half a century of fighting, FARC and the government ceased fire and Colombia entered a post-conflict, or at least a post-peace deal (post-acuerdo<\/em>), era. FARC laid down its weapons and became a legitimate political party. On December 10, Colombian president Juan Manuel Santos gave a moving speech in Oslo, Norway, as he\u00a0accepted<\/a>\u00a0the Nobel Peace Prize.<\/p>\n

There is much rebuilding to be done in Colombia. Reintegrating FARC soldiers into peaceful society will be a difficult process and there is still much bad blood. But the process had started. As Santos said in his speech: \u201cThe long-awaited process of implementation has begun, with the invaluable support of the United Nations. This agreement marks the beginning of the dismantling of an army \u2013 this time, an irregular army \u2013 and its conversion into a legal political movement. With this new agreement, the oldest and last armed conflict in the Western Hemisphere has ended.\u201d<\/p>\n

\"\"
A sculpture of the dove of peace has recently been erected at the Universidad de la Amazonia in Florencia (image: Ma Tianjie).<\/figcaption><\/figure>\n

Peace meant very real opportunities for Colombia\u2019s political and business elite. When the peace talks started in 2012 Santos embarked on a China \u201croadshow\u201d,\u00a0inviting<\/a>\u00a0Chinese firms to invest in Colombia as part of China\u2019s \u201cgoing out\u201d strategy whilst in Shaghai. On the eve of the referendum on the peace deal Colombia\u2019s ambassador to China, Oscar Rueda Garcia, said in an interview with the Xinhua news agency that the positive changes brought by the peace process would mean more investment and partnership opportunities for Chinese firms, including reconstruction in conflict and rural areas.<\/p>\n

Chinese firms were cautiously optimistic about the improvements in Colombia\u2019s investment environment. According to\u00a0analysis<\/a>\u00a0by the China International Chamber of Commerce for the Private Sector, mining, travel and agriculture would be open for investment, but companies should be wary of violent crime filling a vacuum left by FARC.<\/p>\n

Dissent in the mountains<\/h2>\n

After the trauma of the kidnap, Sinochem finally had the peace and opportunity it had been waiting for. The company has witnessed political, economic and environmental changes in Colombia \u2013 it has worked in the country since 2009, when it purchased UK firm Emerald Energy, which owned assets mainly in Colombia and Syria. The acquisition gave Sinochem a number of oilfields in Colombia, making the country a reliable supplier of oil to the group. Colombia is South America\u2019s third largest producer of oil, after Venezuela and Brazil. In 2013, with the security situation improving, Emerald Energy announced the exploration of\u00a0three new oilfields<\/a>\u00a0in partnership with the national oil company. Of these, the Nogal block in Caquet\u00e1 was regarded as enjoying \u201clow prospecting risk, high resource potential.\u201d<\/p>\n

But the development at Nogal hasn\u2019t received a wholehearted welcome in Florencia, or Caquet\u00e1 more broadly. The 240,000-hectare block isn\u2019t far to the south of the city and encroaches on the Amazonian regions of Morelia, Milan and Valpara\u00edso. Before drilling can officially start, Emerald Energy needs to carry out stratification and seismic testing across about 20,000 hectares.<\/p>\n

There is much debate about the project in the village of Valpara\u00edso. It takes three hours on a rural bus and then a motorbike over bumpy roads to get here. Wide and beautiful mountain plains are studded with patches of pristine forest, with livestock and horses grazing leisurely. Farming couple Blanca Barrag\u00e1n and Sime\u00f3n Cort\u00e9s have built a simple wooden home here. Ripe oranges hang from the trees out front, while a sapphire blue parrot rests in the branches. In the kitchen Blanca is preparing dinner and recounting the time she was electrocuted by a river stingray whilst fishing in the forest.<\/p>\n

The last of the evening sun filters in through cracks in the walls, illuminating the faces of several farmers gathered here.<\/p>\n

\u201cWe\u2019re farmers, the oil industry won\u2019t mean anything for us,\u201d said the youthful Rigoberto Valencia, the most talkative of the group. He worries the seismic testing will affect the local water supply. Farmer Jose Antonio Saldarriaga told me that he raises over 100 head of cattle and plants corn, bananas and cassava on his farm. There\u2019s also a patch of pristine forest, watered by a small stream and a spring. \u201cThe farm is our only livelihood.\u201d Waste water and possible leaks from oil drilling are a concern for the farmers.<\/p>\n

Emerald Energy has not ignored these worries. Back in 2014 the company arranged a number of meetings in Caquet\u00e1 to tell community representatives about the project. The environmental impact assessment for prospecting in Nogal was completed late last year. The assessment evaluated the impact of work on the local water, forests, biodiversity, the community and economy. The assessment said there would only be \u201cusual negative impacts\u201d on water quality.<\/p>\n

\n
\"\"
Environmental impact assessment report produced by Emerald Energy for prospecting in Nogal (image: Ma Tianjie).<\/figcaption><\/figure>\n<\/div>\n

But the meetings weren\u2019t enough to convince the locals. \u201cIt was more like a one-sided lecture,\u201d complained Saldarriaga. The villagers are also critical of some of the report\u2019s conclusions, particularly those regarding one of the area\u2019s endangered animals, a monkey called the Caquet\u00e1 titi (Callicebus caquetensis).\u00a0<\/em>The report said that: \u201cAlthough there is data showing the monkey lives in this region, no sightings were made during the evaluation period.\u201d The villagers think that might have been deliberate. \u201cWe hear them in the trees on our farms!\u201d said Luis Eduardo Ortiz, pushing open the door and pointing off into the forest. Javier Garcia, a biologist at the Universidad de la Amazonia and the discoverer of this species of monkey, says it does live here \u2013 and that its distinctive call is easy to identify.<\/p>\n

Increasing opposition<\/h2>\n

The villagers have long lived under the shadow of armed conflict, and it isn\u2019t just environmental concerns that make them wary of the oil industry. Prior to 2006 FARC occupied the forests deep in the mountains of Caquet\u00e1, and private militias (called paramilitary groups in Colombia) sprung up to combat the guerrillas. The constant fighting forced many villagers to leave.<\/p>\n

The villagers are worried that the arrival of the oil companies will end a long-awaited peace and that the influx of money will cause disaster. \u201cThe militias signed a deal with the government ten years ago and disarmed \u2013 but not completely. The temptation of all the oil money may tempt some of them back into organised crime,\u201d said Yolima Salazar, head of the community affairs office of the Catholic Church in Morelia.<\/p>\n

In June 2015, worried villagers of Valpara\u00edso decided to step up their efforts,\u00a0blockading<\/a>\u00a0the only road to one of the seismic testing points to prevent the company from carrying out its work. The riot police were sent in and used tear gas to disperse the villagers. One villager, Juan Pablo Ch\u00e1vez, was left bleeding badly after being struck by a tear gas grenade. Many others were hurt. Violence had returned to the mountain village, albeit for different reasons.<\/p>\n

<\/p>\n

\"\"
Wilson Vaquiro (l) and Luis Eduardo Ortiz display the sign they held when protesting the prospecting activity. The picture is of a Caquet\u00e1 titi monkey (image: Ma Tianjie).<\/figcaption><\/figure><\/p>\n

<\/div>\n

Meditating on the Amazon<\/h2>\n

Jorge Reinel Pulecio is head of the \u201cPeace Coordination Office\u201d at the Universidad de la Amazonia. His office aims to bring each party to the peace agreement into education and research to help find a way forward for this conflict-ravaged place. On the controversy over Nogal, he said: \u201cThe peace agreement was a watershed. One thing the villagers think they should have is a<\/p>\n

the greater right to be heard [as] promised in the peace agreement; the other is that the government and big businesses see a chance to reduce costs.\u201d Before the ceasefire security costs and even ransoms were part of doing business in FARC-held areas \u2013 money that companies no longer need to spend.<\/p>\n

Sinochem and the local community may have differing opinions on how fierce the opposition to the Nogal project is. As a signatory to corporate sustainability initiative the\u00a0UN Global Compact<\/a>, Sinochem lists public welfare undertakings in the region in its annual corporate social responsibility reports, including supporting training in local traditional woodworking skills and building roads. Emerald Energy has also held the usual meetings about the project. In September this year it employed a third party body, the\u00a0Institute for Conversation<\/a>, to talk with local representatives, NGOs and academics. According to Caquet\u00e1 regional government official Carlos Ramirez, who attended those talks, the company has recognised the problem it faces with negative public opinion.<\/p>\n

Although locals complain about some of the things Emerald Energy has done during prospecting, such as starting work without landowners\u2019 permission, these are hard to confirm.<\/p>\n

But what is certain is that there are underlying divergences on how the edges of the Amazon region should be developed, and this breeds opposition. As Jesus Alfredo Gomez of Morelia said, they have a \u201cfundamental\u201d opposition to oil companies working here.<\/p>\n

As Gomez speaks, Hernando Cuellar walked into the yard behind us and gifted me a plump golden fruit. \u201cIt\u2019s called araz\u00e1, unique to the Amazon.\u201d I ate it skin and all \u2013 the flesh was soft and sweet, and tasted a bit like a mango. \u201cThe quality of the fruit here is fantastic, but we can\u2019t transport them, so they rot on the ground,\u201d he said, pointing at the fruit lying in the yard.<\/p>\n

The farming families here go back generations and have their own ideas about how the region should develop \u2013 ideas which are shared by others. Catequ\u00e1\u2019s financial comptroller Eduardo Moya thinks the \u201cuniqueness\u201d of the Amazon region means the government should treat it differently. That uniqueness comes from \u201ca more vulnerable environment\u201d and \u201chigh value added products\u201d \u2013 value that stems from preserving the environment and sustainable methods of production. \u201cCoffee, coca, fruit, even freshwater fish \u2013 all of these have potential on international markets.\u201d<\/p>\n

\"\"
The araz\u00e1 fruit, unique to the Amazon, represents the hopes of the locals (image: Ma Tianjie).<\/figcaption><\/figure>\n

Back in the wooden hut in Valpara\u00edso I asked Rigoberto what other development opportunities there are for Caqueta, if not oil. \u201cWe need the chance to bring our products to market, we need good roads and agricultural technology.\u201d He pointed at the dirt road running past the firm. \u201cHow are we meant to compete with anyone else?\u201d<\/p>\n

In his Nobel Peace Prize acceptance speech, President Santos said: \u201cIt is quite comforting to be able to say that the end of the conflict in Colombia, the most biodiverse country per square kilometre in the world, will yield high environmental dividends.\u201d<\/p>\n

But in Florencia many are dubious about the national government\u2019s concern for the environment. Support for oil drilling in the Amazon has cast a shadow over showy international environmental commitments \u2013 as part of the Paris Agreement Colombia has promised Net Zero Deforestation by 2020. In 2014, Colombia also signed up to the Bonn Challenge to restore 1 million hectares of forest by 2020, an action that would sequester an estimated 90 million tonnes of carbon dioxide.<\/p>\n

The opposition in Florencia reflects a fundamental challenge facing China\u2019s energy investment strategy in Colombia, and even Latin America as a whole. Kevin Gallagher, an expert in China-Latin America trade at Boston University, has calculated that 87% of investments by Chinese policy banks in Latin America have been in energy, mining and infrastructure \u2013 with significant investments in fossil fuels. In comparison, these sectors account for only 34% of World Bank investments.<\/p>\n

In the slightly cramped room of the Peace Coordination Office at the Universidad de la Amazonia, Professor Pulecio is anxious: \u201cWe all know China is currently investing huge amounts in a transition to renewable energy at home, and you\u2019ve made incredible innovations in renewable technology. If China comes to Latin America, to Colombia, to the Amazon, only to extract oil and natural resources, rather than\u00a0assist a similar transition<\/a>, that would be a huge failure.\u201d<\/p>\n

There is no sign the tug-of-war over Nogal will end soon, and in places like Morelia and Valpara\u00edso, it has reached the courts. A representative of Emerald Energy, Juanita Latorre, declined our emailed request for an interview.<\/p>\n

We have no way of knowing if the winds of discontent blowing out of the mountains of Caquet\u00e1 will be felt in the boardrooms of Bogot\u00e1 and Beijing.<\/p>\n

Editor\u2019s note: This article was produced as part of Di\u00e1logo Chino\u2019s unique paired journalism fellowship that brought together a Chinese and Colombian journalist\u2019s perspectives in reporting on the social and environmental impacts of Chinese investments in Colombia in the post-peace deal era. The Colombian journalist\u2019s report can be found\u00a0here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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