Decision Through Optimism: The North Peruvian Pipeline.

Abstract

In the early 1970's the Peruvians struck oil in their Amazon region. The state oil company, PETROPERU, and the Occidental Petroleum Company (Oxy) sought to exploit their finds in this remote area. While PETROPERU's and Oxy's areas displayed immediate promise, they both required a pipeline to transport the crude from the fields to port. Before Oxy's fields had developed to the point of needing a pipeline, PETROPERU decided to build the pipeline on their own. The most significant factors for PETROPERU's decision were: economic pressures: a suitable advanced technology that would effectively reduce selva exploration and exploitation costs: and a new contract philosophy that embodied the revolutionary government's approach to dealing with multinational corporations. Another factor, optimism, is more intangible, but influenced the decision strongly. This paper discusses the need for, construction of, and results of building the Northern Peru Oil Pipeline.

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Document Details

Document Type
Technical Report
Publication Date
May 01, 1987
Accession Number
ADA185759

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  • Arturo G. Zaldivar

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  • Air Force Institute of Technology

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