Protests in Ecuador paralyzed oil production at three fields

Due to mass protests, the Ecuadorian state oil company Petroamazonas EP has suspended the operation of three oil fields. It is reported by Interfax-Ukraine.

Such a move was caused by "the seizure by groups of people unrelated to their activities”, said the country's electricity ministry. Representatives of the company "are in peace negotiations with them", the agency added.

Losses from stopping production are 60 thousand barrels per day.

Protests in the country began due to a sharp increase in fuel prices caused by the abolition of state subsidies. In early October, the cost of fuel more than doubled. President Lenin Moreno explained that authorities can no longer afford to subsidize its purchase.

Fuel subsidies were introduced in Ecuador in the 1970s. Their abolition is part of a package of economic measures by which the authorities want to deal with the crisis in the country. Ecuador previously received a loan of $4.2 billion from the International Monetary Fund and pledged to reduce government spending in response. The subsidy program cost the budget $1.3 billion per year.



Tags: contracts, oil, hydrocarbon production, legislation, IMF, Top management, energy market, добыча нефти, drilling, Oil refinery plant, taxes

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