Petroperu has reported that the rupture of its main oil pipeline spilled 3,000 barrels of crude in an Amazonian region.
The oil is believed to have polluted the Chiriaco and Morona rivers in northwestern Peru on which native villages depend on for water.
National environmental regulator OEFA said that Petroperu will have to face $17m in fines in case tests prove that the spills that occurred in late January and early February 2016 are found to have affected the health of local people.
The company was quoted by Reuters as saying that it stopped transportation of 5,000 to 6,000 barrels of oil per day due to two breaks in the pipeline.
Petroperu president German Velasquez said that the company needs some time to restart the pipeline operations.
The pipeline transports crude from the Pacific Exploration & Production-operated block 192.
Petroperu said it failed to continue its efforts to contain the damage due to heavy rains and is in the process of carrying out an assessment of the pipeline to prevent such spills in the future.
The company was ordered by the regulator to replace parts of the pipeline and improve maintenance.
According to Petroperu, the first leak occurred due to a landslide but the cause of the second rupture is yet to be determined.
