Ecuador faces political crisis amid oil protests

Ecuador's president Guillermo Lasso could face a possible impeachment vote soon in congress for his handling of more than two weeks of sometimes violent protests over higher fuel prices that have cut crude output by more than half.

Crude production had recovered by 2.1pc on 27 June to 239,620 b/d from 234,790 b/d the previous day. But Ecuador's oil output has tumbled by 52pc from 499,005 b/d on 12 June, the day before the confederation of indigenous nationalities (Conaie) started protests for more gasoline and diesel subsidies and benefits for farmers.

Lasso called off talks between the government and Conaie that started only yesterday after an army sergeant was killed and 12 other soldiers and police were hurt when protesters attacked a convoy carrying supplies to oil fields in Puerto Providencia in the Amazonian province of Sucumbios.

The chaos accelerated a call for an impeachment vote in congress, promoted by the opposition party Unes that is led from afar by leftist former president Rafael Correa, considered a fugitive by Ecuadorean courts. The members of the assembly have been debating a possible impeachment since 25 June, and they may vote today. If Lasso is voted out of office, his vice president Alfredo Borrero will assume the role and new elections for the president and congress will be called in six months.

During the last more than two weeks, protesters have blocked highways and roads, leading the government to declare force majeure on contracts across the oil value chain. Protesters have also invaded fields, wells and crude facilities, forcing technicians to stop working.

Protests have shut 1,199 wells, around 1,019 of those operated by state-owned PetroEcuador and another 180 wells by private-sector producers.

The 360,000 b/d Sote pipeline, owned by PetroEcuador, is shut because of the lack of oil and the 450,000 b/d OCP private-sector pipeline is pumping at 20pc of its capacity.

The energy ministry has warned that oil output could be suspended completely in the following days if PetroEcuador and private producers run out of diesel and other fuels for the power plants used by oil well equipment. Yet some fields produce their own fuel through basic on-site refineries.

Ecuador has lost $166.4mn in the oil sector in the last 15 days because of the strike, according to the ministry of energy.

By Alberto Araujo