Ecuador's state oil company Petroecuador faces a lawsuit of at least five billion dollars after an official voided a public tender to eliminate toxic gas flares in the Amazon, according to the affected company and local observers.
The flares, used to burn gas associated with oil extraction, have long been linked to serious illness among communities living near wells in the Amazon region. Petroecuador was previously sued by a group of girls whose case reached the provincial court of Sucumbios, which ruled in their favour. Despite the ruling and a deadline to remedy the situation, the toxic emissions have continued.
Petroecuador had moved to address the problem by launching a tender to capture the wasted gas and convert it into electricity, a measure described as representing savings equivalent to 315 megawatts. A technical commission recommended awarding the contract to U.S. company Amazon Tech, which had included financing in its offer.
However, the contract was never signed. An official who, according to the article, lacked legal authority at the time declared the tender void on grounds characterised as trivial. Amazon Tech has since announced it will seek damages of at least five billion dollars, a claim the article says would damage Ecuador's standing with the United States, its main trading partner.
A recent opinion from Ecuador's state attorney has opened the possibility that Petroecuador could reverse the voided tender, on the grounds that the official lacked competence when the administrative act was signed. The article's author says such a reversal would restore Ecuador's credibility as a country that respects the environment and the rule of law.
