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Ecuador lifts state of emergency as oil protests ease


AFP
QUITO
Petroleumworld.com 02 24 06

The Ecuadoran government has lifted a state of emergency in the oil-rich Napo province after an agreement was reached ending four days of protest which had cost the oil sector millions of dollars, Interior Minister Alfredo Castillo told AFP Thursday.

"An agreement was reached Wednesday night that allows the state of emergency in Napo to be lifted. I think the situation is on the way to being resolved," Castillo said.

Ecuador's government had declared a state of emergency Wednesday in the northeastern province where protestors had taken over oil facilities demanding a bigger cut of the country's oil profits.

The government estimated the protests had cost 13 million dollars a day to the oil industry.

Authorities had deployed troops, imposed a dusk-to-dawn curfew in the area, and 10 people were injured in related violence.

The interior minister said that all sides had agreed to form a committee that would find a solution meeting the demands of Napo authorities and residents.

A delegation from the Amazonian province was to meet Thursday with the government to define agreements that would lead to suspension of the protests.

"After 30 years of abandonment, we have longheld hopes: to share in education and the maintenance of the Tena-Baeza road that was destroyed," Heckel Ribadeneria, vice prefect of Napo, said, explaining the reasons behind the protests.

Protestors had taken over the Sardinas pumping station that feeds the area's Heavy Crude Pipeline (OCP), restricting oil flow and causing damage estimated at millions of dollars a day.

The OCP delivers up to 450,000 barrels per day of oil from Amazon oil fields to the Pacific Coast for the US-based Occidental Petroleum, Spain's Repsol and Canada's Encana.

Another pipeline in the area delivers 380,000 bpd of oil for state-run Petroecuador oil company. Flow in that pipeline was cut off Monday for 23 hours.

Ecuador, with 532,000 barrels of oil extracted per day, is Latin America's fifth-largest oil producer. Thirty-seven percent is extracted by Petroecuador, the rest by private companies.

AFP 02 23 06

Copyright © 2006 AFP. All rights reserved


 

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