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Reuters Eight oil workers freed in Ecuador's Amazon

Date: 17-Dec-02
Country: ECUADOR

Achuar Indians seized the eight Ecuadorean workers to protest CGC's exploration for crude in block 23, an area about 125 miles (about 200 km) southeast of Quito, demanding the company leave their ancestral jungle lands.

After more than a week of talks among government officials, CGC and Achuar leaders, the Indians agreed to release the hostages in three groups between Saturday and Sunday provided Quito requested the firm halt exploration until they can reach agreement about the drilling.

Interior Ministry Under Secretary Maximiliano Donoso said the government had recommended the company halt operations until the dispute with local communities could be worked out but that, "it is the company and Energy Ministry's decision."

CGC officials in Quito were not immediately available for comment, nor were Energy Ministry officials.

Amazon Indians, including the Achuar community, argue that under the 1998 Constitution the government must consult local communities on oil activities. In the past, Energy Ministry officials have defended CGC's right to explore for crude because its contract was signed in 1996.

Ecuadorean Indians have strongly resisted government plans to expand oil exploration, fearing environmental damage and health problems from pollutants.

Oil is Ecuador's biggest export. The cash-strapped Andean nation produces about 400,000 barrels of crude per day but hopes to expand output once a new pipeline is completed next year that will raise crude transport capacity.

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