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Petroecuador : Companies must restart operations by Friday or will loose contracts


Petroleumworld
CARACAS
Petroleumworld.com 03 10 06

After a week on strike, Petroecuador, has told the oil companies to return to work by Friday or have their contracts terminated. Around 5,000 contracted workers when on strike Monday demanding payment of salaries, among other things.

"We have told the companies that, according to their current contracts, if they don't go back to their services by Friday we'll be free to unilaterally end their contracts and contract with other companies for the services we need," a top official at Petroproduccion said Thursday. The official asked not to be named.

"The problems that the companies have with their employees don't have to affect Petroproduccion or the country; the demands have to be addressed by the employers," the official said.

According to Ecuadorean law, contracted firms are mandated to maintain an emergency fund, with up to three months of workers' salaries, in case the state-run company doesn't pay them on time. According to Petroecuador, that hasn't been done.

Petroecuador's production was on Thursday at 53% of the normal production of 200,000 barrels a day.

"We have been able to recover production, but the problem hasn't stopped. Our technicians reopen wells but minutes later the on-strike workers are back and force the technicians to leave so they can cause more trouble," said the official.

The company is seeking to increase production to 190,000 barrels a day in three to four days once needed repairs are completed, Jaime Crow, Petroproduccion vice president, said in a press release.

In addition to the Friday deadline, Petroecuador asked the military to intensify patrolling in oil installations to prevent on-strike workers to obstruct the work being done by Petroproduccion technicians to recoup production levels.

However, workers said they will be on strike until demands are met.

 

AFP 03 09 06

Copyright © 2006 AFP. All rights reserved.


 

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