Controversy continues to plague oil operations in Ecuador.
Despite efforts by the government to increase private participation in Ecuador's upstream, an unsettling note for prospective investors is mounting opposition by Amazon Indians objecting to the offer of acreage in their homeland.
Meantime, state petroleum company Petroecuador and Texaco Inc. are trying to reach settlement of legal claims against each other over pricing and alleged environmental damage stemming from Texaco's 25 year operatorship of the fields that today provide the majority of Ecuador's oil production.
INDIANS PROTEST
About 100 Amazon Indians occupied the offices of the Energy and Ministry last week to protest the government's seventh bidding round, according to press reports.
Luis Macas, president of the National Confederation of Ecuadorian Indians, said natives of the Ecuadorian Amazon are seeking a 15 year moratorium on exploration in the Oriente jungle region.
The natives are protesting what they see as threats to the region's environment as well as to their way of life.
Attorneys representing Ecuadorian Indians last fall filed a $1 billion class action lawsuit in a New York federal court, alleging Texaco contaminated their rain forest habitat with oil wastes during 25 years of operations. Texaco, which turned over its Oriente operations to Petroecuador in 1992, vehemently denied the allegations (OGJ, Nov. 1993, Newsletter).
LAWSUITS
Texaco officials met with Acosta last month to study their reciprocal regarding Texaco's Oriente operatorship.
Texaco's claims reportedly could run to as much as $500 million, industry sources in Quito said. Earlier reports put Texaco's claims at $297 million covered by three lawsuits (OGJ, Jan. 3, Newsletter).
In three lawsuits, Texaco claims additional payment for crude delivered during January 1984-June 1992 to Petroecuador predecessor CEPE for domestic refining, which Texaco claims should have been paid at international prices and not fixed domestic prices.
Although the exact amount has not been determined yet, Petroecuador's claims total a fraction of Texaco's - perhaps less than $50 million - as indicated by results of recently completed technical and fiscal audits. Responsibility for alleged environmental damages has not been assessed yet because an environmental audit has not been completed.
Texaco and Petroecuador are seeking an informal settlement of mutual claims before pressing the claims further in Ecuadorian or international courts. Texaco's participation in the seventh bidding round will be conditioned on the two reaching at least a provisional settlement of outstanding claims.
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