Ecuador: Can't meet oil contracts |
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Fri, 30 Mar 2007 23:50
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QUITO, Ecuador (AP) - Ecuador's state oil company announced Friday it could not guarantee to fulfill crude oil contracts, three weeks after Brazilian state oil firm Petrobras halted production in its eastern jungle concession amid protests by locals.Petroecuador said in a statement that it invoked 'force majeure,' which means it acted for reasons beyond its control -- after Petrobras froze production in the eastern Orellana province 125 miles east the capital, Quito.Petroecuador said it is deferring the delivery of some 36,000 barrels in crude exports a day. The state oil company's recent monthly average was 225,000 barrels a day.Petrobras, which hands just over half of its crude to Petroecuador, halted production earlier this month amid protests by residents in the area demanding infrastructure improvements, including paved roads.Petroecuador said the halt caused a 'drastic reduction' in production.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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