Eric Watkins
Senior Editor
LOS ANGELES, Aug. 23 -- Venezuelan President Hugo Chávez offered to provide Ecuador oil after protestors disrupted operations by state-owned Petroecuador in the provinces of Orellana and Sucumbios.
Ecuador could repay the oil from its own supplies when production returns to normal, Chávez said.
Ecuador suspended exports on Aug. 18. Petroecuador has cut its production to 33,167 b/d from 201,000 b/d previously (OGJ Online, Aug. 22, 2005).
Protesters attacked pipelines and pumping machinery and blocked highways in the two provinces in an attempt to force the government to free other protesters held in custody. The dissidents are demanding more jobs and local investments.
Chávez made his offer during his weekly radio program, broadcast Aug. 21 in Cuba's western province of Pinar del Rio, 200 km west of Havana, with Cuban President Fidel Castro.
Chávez said his government offered Ecuador its support to "overcome the difficult economic situation created by the drastic reduction of oil production." Ecuadorian President Alfredo Palacio responded by declaring a state of emergency in the two oil-producing provinces.
With Chávez's support, Ecuador could develop its supplementary imports program in order to cover the deficit resulting from Ecuadorian refineries' operating at less than full capability.
According to the Ecuadorian government's preliminary estimates, losses caused by the strike could amount to $443 million by October, when crude production might stabilize.
Chávez said he would like Ecuador to be a member of the Petroandina system, which Caracas is promoting as an energy alliance that will allow countries to deal with situations such as decreased production due to strikes or other events.
Contact Eric Watkins at [email protected].
