Major banks support rainforest oil project despite problems
Financing fossil fuels, which are the primary cause of climate change, has become controversial in recent years, with major banks under fire for the scale of their lending for oil and gas development
LONDON (AP) — In the Putumayo region of the Colombian Amazon, Segundo Meneses' daily routine took him to the Chufiya river, its banks verdant and waters alive with catfish and piranha. On one morning seven years ago, he noticed a dark film lapping the shore. Where the river turned a bend, it turned to black. It was an oil slick that he says went on to sicken his young family and poison their cows and pigs.
The British law firm Leigh Day is now suing Amerisur, the oil company operating in the region, on behalf of 171 Putumayo farmers, including Meneses. That spill was not the only complication with this particular oil operation. Nearby Siona Indigenous people say they reject the oil pumping and will fight it. This region is also awash in coca production and former rebel groups dispute drug territory, sometimes disrupting the flow of oil. Then there are reports by United Nations rapporteurs and an interfaith non-profit group that say the oil company, Amerisur Resources PLC, may have worked with rebels to pressure the Siona and local farmers to cease their opposition in order to keep oil flowing.
Yet none of this seemed to deter an $800 million oil and gas firm based in Chile named GeoPark Ltd. from buying Amerisur two years ago. GeoPark successfully lined up banks to help it obtain the Putumayo oilfields, indicating that even with climate changes hitting wide areas of the globe, backing for the activities that cause it is still available. Demand for crude oil continues to rise, not fall, underscoring the lure for oil companies and banks to keep operating as they have for decades.
“If banks help finance a company like GeoPark, it seems there is nothing they will refuse to touch,” said Maaike Beenes, banks and climate lead at the non-profit BankTrack, an environmental advocacy group based in the Netherlands. This deal, she said, raises numerous red flags because of Amerisur's legacy, "from doing business in a conflict zone to fossil fuel expansion in sensitive ecosystems of the Amazon, to a history of violations of Indigenous peoples’ rights.”
