Reuters AlertNet Lite - Petroecuador controls oil protest, output rises

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Petroecuador controls oil protest, output rises

03 Dec 2007 13:27:47 GMT
Source: Reuters

QUITO, Dec 3 (Reuters) - Petroecuador has controlled a violent protest in an Amazon jungle province that had slashed the state oil firm's daily output by 20 percent earlier last week, a company spokesman said Monday.

Petroecuador's oil production was up near normal levels on Sunday at 172,404 barrels per day, recovering from the demonstrations by villagers of the province of Orellana who demanded more state funding for infrastructure projects.

"The military has provided security for our installations, and operations are returning to normal," said Petroecuador's spokesman Fausto Mejia.

Ecuadorean President Rafael Correa last week declared the province under state of emergency to quell the protest, banning public gatherings and setting curfews.

Correa also removed Petroecuador's chief Carlos Pareja and named Navy officer Fernando Zurita as the company's new head to battle the demonstration that had blocked roads to key oil fields.

Petroecuador top officials discarded attacks to the country's state oil pipeline SOTE after a local television reported bomb blasts near the key line.

Ecuador, South America's fifth largest oil producer, repeatedly suffers from demonstrations that curtail output in the poor Amazon region. (Reporting by Alonso Soto; Editing by John Picinich)

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Last updated:Mon Dec 3 13:25:34 2007