Ecuador oil protesters call truce

[Matt W]

http://news.bbc.co.uk/1/hi/world/americas/4172038.stm

Demonstrators in Ecuador's oil-rich Amazonian region have agreed to a truce with the government, following days of protests that have crippled production. A delegation is preparing to travel to the capital Quito for talks, reports say. Protesters want some of Ecuador's oil money to be invested in the region. The army moved to regain control after hundreds in the two provinces occupied oil installations and airports. Venezuela has agreed to loan Ecuador oil until its industry stabilises.

Interesting. Will Ecuador follow the Venezuelan model and defy the World Bank?

[Milton Bradley]

Quote by: Matt W http://news.bbc.co.uk/1/hi/world/americas/4172038.stm Interesting. Will Ecuador follow the Venezuelan model and defy the World Bank?

I can't really comment on the will of the Ecuadorans, but I hope that they do stick it to the World Bank.


We all need to stick it to the World Bank.

[righthand]

Ecuador's oil commitments to be covered by Venezuelan 'loans'

22/08 2005 18:51 CET

Venezuela is to lend Ecuador crude oil, without charge, so that it can cover its export obligations. Ecuador's output has been halted by protesters who smashed oil field equipment as they demanded more investment and employment in the industry. The announcement from Venezuelan President Hugo Chavez, came while was on a visit to Cuba. Chavez said: "Because of its internal problems, Ecuador has had to suspend production of its oil. They have asked us to lend them oil and Venezuela will cover the Ecuadorian government's commitments." Disturbances and attacks on pipelines in oil fields in the Amazon provinces of Sucumbios and Orellana, led Ecuador to declare a state of emergency. Pipelines and pumping machinery was blown up or vandalised. The protest leaders agreed to stop the attacks and negotiate with the government after they were released from jail. The events caused crude oil prices in the US to rise by more than two dollars a barrel on Friday. Ecuador's state-owned oil company is currently only producing about a quarter of its normal output and private firms are pumping virtually nothing. The government says full production will not be restored until November. Venezuela did not reveal how much oil it will lend Ecuador or how long the arrangement will last.

I'm sure Ecuador will remember who its friends were when its current difficulties are over. I wonder will others remember that Hugo's intervention helped to quickly stabilise a situation that was getting out of hand.



[CENTER] Oil prices dip as traders monitor Ecuador, Iraq
ToDayonLine.com



Time is GMT + 8 hours Posted: 22-Aug-2005 19:29 hrs[/CENTER]

The International Petroleum Exchange in London. Oil prices dropped in New York as traders tracked news in Ecuador and Iraq, while London trading was suspended after an apparent power failure at the International Petroleum Exchange. Oil prices dropped in New York as traders tracked news in Ecuador and Iraq, while London trading was suspended after an apparent power failure at the International Petroleum Exchange. Oil futures were retreating after Ecuador declared an end to six days of civil unrest that had slashed its oil exports. Iraq meanwhile suspended all oil exports from its southern fields after a suspected power outage. Ecuador is the fifth-largest crude producer in South America. About 60 protest leaders arrived in the capital Quito late Sunday in military planes to hold talks with the government in a bid to end a strike that has cost millions of dollars. "We granted a suspension to talk with administration officials, but lifting the strike depends on the agreements we reach," Orellana provincial governor and protest leader Guadalupe Llori told AFP. An offer by neighbour Venezuela to make up for any production loss from Ecuador was also a major factor in calming the market, which was due for a correction because of a sharp spike in prices on Friday, an analyst said. "What has changed since Friday is that Venezuela agreed to assume Ecuador's oil export commitment," said Dariusz Kowalczyk, investment strategist at CFC Seymour Securities in Hong Kong.

[Matt W]

It's all covered in the original link, righthand....no need to post full-page articles stating exactly the same thing....

[righthand]

UPDATE 1-Ecuador protesters reach pact with oil firms

Reuters
Thu Aug 25, 2005 8:46 PM ET

QUITO, Ecuador, Aug 25 (Reuters) - Ecuador oil protesters, whose attacks have shut down petroleum exports, struck a deal with energy companies on Thursday in which the firms will invest more in communities where they operate, protest leaders and the mediator of peace talks said.

[CENTER]=====[/CENTER]

Ecuador asks Venezuela for 6 mth grace period before paying crude oil

http://www.forbes.com/markets/feeds/...fx2192331.html

QUITO (AFX) - Ecuador has asked for a grace period of six months before starting to pay for the crude oil to be supplied by Venezuela to help Ecuador cope with disruption in its production, said Economy Minister Magdalena Barreiro. Barreiro said under the agreement signed with Venezuela, Ecuador was to repay with crude oil once its own production returned to normal. However, the types of crude oil produced in both countries are different and make the exchange initially foreseen unviable, she said.