
Ecuador grapples with results of oil and mining referendums

Legal battles over two referendums in Ecuador are on the horizon.
The referendums were part of the first round elections on August 20 and voters decided to stop oil extraction at block 43, known as Ishpingo-Tambococha-Tiputini (ITT), and metal mining in the Andean Chocó area, north of Quito.
But energy minister Fernando Santos told BNamericas that communities near block 43 must authorize the closure first and that production will continue until the last day of the Guillermo Lasso administration.
A runoff is scheduled for October 15 and the new government term starts November 30.
“According to the constitution, the communities of Orellana province, where the block is located, have to decide whether to start or end exploitation of natural resources; they are the ones who have to say yes or no to the closure. Therefore, we are facing a constitutional problem and the country must be aware of that,” Santos said.
He added that the constitutional court, which authorized the referendum, must issue a ruling.
When approving the ITT referendum, the court mandated that the block’s infrastructure should be dismantled within one year, but Santos said works are complex and cost around US$500mn.
Around 60% of voters favored shutting down the block, although Orellana province voted to maintain it.
Santos said production of around 57,000b/d will continue, but an expansion is not viable. "The authorities, together with the technicians, will carry out a plan for the possible dismantling of the infrastructure and closure of the wells so that the next government can implement it. Meanwhile, normal production will continue."
CHOCÓ
Mining in the biodiverse Chocó area is still in early stages, but Quito residents voted to shut it down.
Promoters of the referendum, like lawyer Fred Larreátegui, told reporters that no project would reach the production stage. Larreátegui said 12 concessions were granted and eight are being processed.
Larreátegui added that the results were clear and that anti-mining groups will go to the courts to ensure the results are respected.
Santos, meanwhile, said the constitution guarantees legal certainty and that a consultation cannot be applied retroactively. “The signed contracts have the right to advance to the production stage. No new contracts will be issued, but those signed will continue.”
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Political Risk & Macro (Ecuador)

Ecuador referendum expected to strengthen Noboa
The latest poll indicates that 81% of Ecuadorans support the president's performance in terms of combating crime.

Why Ecuador's bloody Easter was just the beginning
BNamericas speaks with Mario Pazmiño, a former director of Ecuador's intelligence agency, about the latest spate of violence tied to drug gangs in ...
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects
Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.
- Project: ALWA photovoltaic solar plant
- Current stage:
- Updated:
13 hours ago
- Project: Mirasol Solar Park
- Current stage:
- Updated:
3 days ago
- Project: Pampas wind farm
- Current stage:
- Updated:
3 days ago
- Project: San Cristóbal Mine Expansion
- Current stage:
- Updated:
4 days ago
- Project: Dam in the Ninahuisa River basin for water reinforcement of the San Gabán II hydroelectric plant
- Current stage:
- Updated:
4 days ago
- Project: Oriental light corridor - Section 1
- Current stage:
- Updated:
4 days ago
- Project: Cotabambas
- Current stage:
- Updated:
12 hours ago
- Project: South East Coast Consortium (SECC) block
- Current stage:
- Updated:
10 hours ago
- Project: Block U(a)
- Current stage:
- Updated:
8 hours ago
- Project: Wastewater Treatment Plant in Trujillo (WWTP Trujillo)
- Current stage:
- Updated:
4 days ago
Other companies
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: Odebrecht Engenharia e Construção Internacional S.A.  (OECI)
-
Odebrecht Engenharia e Construção, part of the Brazilian multinational conglomerate Odebrecht, was created in 2014 to act as a non-operational holding company for the group's en...
- Company: Ingeniería Arquitectura Construcción SpA  (GIA Ingeniería)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Medcap Energy Caribe, S.R.L.
-
The description included in this profile was taken directly from an AI source and has not been edited or modified by BNamericas researchers. However, it may have been automatica...
- Company: BHP Group Limited  (BHP)
-
Australia-based BHP, formerly known as BHP Billiton Ltd., is a mineral resources company that operates in seven segments: petroleum; aluminum; base metals; carbon steel material...
- Company: HINS S.A.
- Company: Arctech Solar México
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: SEPCO1 Construções do Brasil Ltda.  (SEPCO1 Construções do Brasil)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by BNamericas’ content team. However, it may have been au...