Following two breaches in the pipeline which occurred in late January and early February, the oil is believed to have polluted the Chiriaco and Morona rivers in northwestern Peru, on which native villages depend on for water.
The firm has halted transportation of 5,000 to 6,000 barrels of oil per day which is mostly sourced from the Pacific Exploration & Production-operated block 192, reported Reuters.
A water quality emergency has also been declared by the Peru Health Ministry in five districts near the spill.
According to the company, a landslide had caused in the first leak while the cause of the second rupture was not known.
Petroperu president German Velasquez said that the company needs some time to restart the pipeline operations.
Meanwhile, National environmental regulator OEFA said that Petroperu would be fined with $17m if the tests prove that the spills have affected the health of local people.
The company has been ordered to replace parts of the pipeline and improve maintenance.
According to the US Energy Information Administration, Peru is estimated to hold 741 million barrels of oil reserves.
