Nov. 30 -- Ecuador's state oil company said a management shakeup failed to blunt violent protests in the Amazon that have hurt output, and a state of emergency has had no effect on the disorder.
Production today at PetroProduccion, the company's subsidiary affected by the attacks, remains about 20 percent below the normal 175,000 barrels, causing lost revenue of about $3 million a day, PetroEcuador said in an e-mailed statement. Ecuador produces about 500,000 barrels a day.
Settlers in the Amazon region, home to almost all of Ecuador's oil industry, have been protesting for six straight days, blocking roads and attacking facilities with dynamite as they try to force the government and company to provide improved roads, jobs, and environmental cleanup.
President Rafael Correa yesterday declared a state of emergency over both the company and the affected province of Orellana, removing PetroEcuador President Carlos Pareja along with Interior Minister Gustavo Larrea. He replaced Pareja with Navy officer Fernando Zurita, blaming Pareja for ``mismanagement'' of the crisis and poor efficiency at the company. He appointed Pareja to the job when he took office in January.
``If for any reason the protests should widen or if the problem continues as it has for a number of years, he can use the Navy to assert control over the sector,'' said analyst Eleanor Murphy at Control Risks in London in a telephone interview.
Indigenous Movements
Correa, whose party won about 60 percent of the vote in elections to a constitutional assembly in September, has clashed with regional political leaders in Orellana, where support for an opposition party close to indigenous movements runs strong. The party, Pachakutik, succeeded in having several members elected to the assembly, largely shutting out Correa's Alianza Pais.
Zurita traveled to the area on a fact-finding mission today, PetroEcuador said. Several police officers have been hurt during the protests, the company added.
Ecuador is set to rejoin the Organization of Petroleum Exporting Countries on Dec. 5 after a 15-year absence from the group.
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