OIL

Ecuadorian army battles protesters for oil fields

ECUADORIAN troops have regained control of some oil wells in the north-eastern Amazon from protes...

Petroecuador has lost about a week’s production since the protests started.

Energy minister Ivan Rodriguez said protesters late Thursday had dynamited a secondary pipeline and an oil camp, forcing Petroecuador to warn it could not guarantee overseas deliveries because of forces beyond its control. State oil exports have now been suspended.

Rodriguez said the protests were putting pressure on Ecuador's internal reserves, and the country would have to import about $US140 million ($A186.19 million) worth of petrol, diesel and cooking gas to meet internal demand.

Residents of the Sucumbios and Orellana provinces took over two airports on Sunday August 15 and the following day started blocking roads, overrunning oil camps and sabotaging oil facilities.

Soldiers are authorised to use firearms against the protesters.

The demonstrators are demanding oil companies hire more local workers, provide greater investment in roads and public works in the zone, and make income tax and royalty payments directly into local government coffers.

The protesters are reportedly being backed by regional officials. Authorities said late Friday that Sucumbios provincial governor Guillermo Munoz had been detained and the mayor of Lago Agrio, Maximo Abad, had been arrested on charges of "inciting public disorder".

But the government has now released these men and other leaders of the protests after the protestors agreed to cease the attacks and negotiate with the government, officials said yesterday.

Output by Petroecuador totalled 54,000 barrels a day yesterday - far below the 201,000 bopd production before the protests began.

The government has said it would take until November to restore Petroecuador's production, which is crucial to the national economy. The corporation said it could take longer to restore production in some fields.

Oil output by private companies has been reduced to almost nothing, said Rene Ortiz, president of the Ecuadorean Hydrocarbons Association.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry