Accessibility links

Venezuela to Lend Oil to Protest Torn Ecuador


Venezuela will lend crude oil to nearby Ecuador until that nation's oil industry stabilizes after a week of protests.

Venezuelan President Huge Chavez made the announcement from Cuba Sunday. He said Venezuela will assume Ecuador's oil commitments at no cost to Ecuador. Most Ecuadorian oil exports go to the United States.

Meanwhile, a truce between the protesters and the Ecuadorian government has restored calm in the country's northeast.

Wednesday's state of emergency in Sucumbios and Orellana provinces remains in effect, but officials on both sides of the conflict are contemplating talks.

The protesters have been demanding new contract negotiations with foreign oil firms, and increased spending on infrastructure and social programs.

Ecuador's state-run oil firm, Petroecuador, which usually produces over 200,000 barrels of oil a day, produced only 33,000 on Saturday.

Government officials say it will take until at least October for normal production to be resumed.

Some information for this report provided by AP and Reuters.

XS
SM
MD
LG