Petroecuador, the public company that operates Block 43 ITT, as it is not a political entity, cannot influence the vote for or against in public consultation, but instead has a strategy of implementing a kind of informative campaign to educate citizens about the risks of the two options, so that they, in turn, would vote in an informed manner. In addition to presenting figures on the consequences for the treasury, the media will participate in expert panels, and guest appearances were also considered. in situ.
The thing is On August 20, along with the election of the president and members of parliament, citizens will also have to vote for the referendum on Block 43 ITT. The question is: “Do you agree with the Government keeping the ITT oil, known as Block 43, underground indefinitely?”
According to the manager of Petroecuador, Ramón Correa is an extemporaneous question that comes ten years late, because it was asked before there was any activity. He explains that block 43 has three fields Tambococha and Tiputini which are in the north and which have been producing since 2016; while Ishpingo is downstream and started production a few months ago. From 2016 to today, 133 million barrels have already been extracted from the three fields, says Correa.
Despite the possibility of carrying out exploitation works on 300 ha, only 80 ha were used. Have the idea that La Carolina park in Quito has 60 ha. It also ensures that there have been no spills for ten years.
If asked, he would not continue with an oil activity that was conducted in an environmentally friendly manner, says Correa. He assures that there has been no spill in ten years.
However if yes wins, at that point it should stop producing and it would be a shutdown year. For Correa, this is not sustainable and the resources needed to both close and compensate the companies do not exist. Thus, 1200 million dollars of revenue would not be obtained, and at least 500 million that do not currently exist should be allocated for closure (plugging of 250 existing wells, decommissioning of oil facilities and work to ensure that the jungle remains as it was found). For Correa, the technical abandonment of the wells can be done in three or four years, because it has to be planned. Taking into account all these costs and not receiving income from production for fifteen years, it is said that Mr damage to the state of 16,400 million dollars.
In the meantime, The Quito Chamber of Commerce and its Petroleum Commission-Competro have expressed concern about the public consultation on oil exploitation in Block 43. They reasoned that the argument of the Constitutional Court to allow the consultation is unfounded and untimely, besides that This seriously affects legal certainty and is disconnected from the economic reality facing the country.
Effect on legal certainty:
The acceptance of the consultation affects the investments that have been made in block 43 for ten years, creating a negative precedent for this and other sectors that invest or can invest in the country.
Sustainability of public finances:
The consultation unnecessarily jeopardizes 12% of oil production, which means approximately $1,200 million in revenue for the state, affects an economic chain exceeding $2,500 million as a result of this activity, and could lead to the loss of 50,000 direct and indirect jobs.
As stated in the press release, the Chamber and Competro believe that the consultation endangers the sustainability of the state and the well-being of citizens. They also called on the electoral authorities to promote a responsible debate on this topic.
Source: Eluniverso
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