Violent Clashes Halt Oil Exploitation in Pichanaki, Peru

The deal was brokered by the central government late Thursday after violent protests during the week left one protester shot dead and at least 75 protesters and policemen hurt.

Energy-sector analysts say that the protests could be another factor in slowing investments in natural-resource projects in Peru as investors become more concerned about safety. Violent protests against mining and energy projects have been common in recent years throughout Peru.

Energy and Mines Minister Eleodoro Mayorga and other government officials negotiated the truce with protesters leaders. Protesters had said they were concerned that the company would pollute the environment with its work.

The protesters lifted road blockades until at least Feb.19, when another meeting between government officials and protest leaders is set to take place to deal with outstanding issues.

President Ollanta Humala blamed the violence on “extremist groups” led by leaders who he said go from one area to another in Peru to organize protests and extort concessions from companies.

Pluspetrol said that since September last year it hasn’t done any exploration in Pichanaki and only had materials stored there.

“We are going to leave the zone as a result of the fact that our activities are close to ending,” a company official said, adding that the company plans to continue working in the overall exploration bloc known as lot 108.

“It is worth noting that we have met all legal, environmental and social requirements to continue exploratory work in the area,” Pluspetrol said in a statement.

Pluspetrol also faces protests in the Amazon region in northern Peru, where protesters have taken control of 14 oil wells to back demands for compensation for the use of what they say are their lands. The company is the biggest producer of gas and oil in Peru.

“A new wave of violence is taking place in diverse regions of the nation with the aim of weakening the democratic system, paralyzing the mining and energy sectors, and scaring away private investments that are needed to ensure progress in Peru,” the private sector National Society of Mining, Energy and Petroleum said in a statement.

Write to Robert Kozak at robert.kozak@wsj.com