The Strategist

Ecuador oil corporation declares force majeure due to protests in the country

06/20/2022 - 12:02

Ecuador's state-owned oil business, Petroecuador, has halted operations owing to a declaration of force majeure in the aftermath of the country's recent demonstrations.

Confederation of Indigenous Peoples of Ecuador (Conaie) protests against the country's social and economic policies began on June 13 with small demonstrations in 11 regions and grew in intensity the next day when police detained Confederation leader Leonidas Iza for 24 hours on charges of obstructing public services. Ecuador's President, Guillermo Lasso, announced a state of emergency in many parts of the country on Saturday.

The firm has adopted additional cautious and preventive measures since the present conflict scenario threatens the safety of its personnel, infrastructure, and mining activities, according to the communiqué.

Petroecuador notes that the proclaimed force majeure affects exploration, operations, transportation, and local and international trade.

Since the demonstrations began, about 28,000 barrels of oil have been lost, and seven drilling rigs have been shut down in the country.