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Weekly Report - 9 May 2006

ECUADOR: Uprising threatened over new deal for Oxy

Politics and oil, long intertwined in Ecuador, have become the ingredients for a new confrontation between the Palacio administration, on one side, and the Amazonian provinces of Orellana and Sucumbí­os, and the umbrella indigenous confederation, Conaie, on the other. At stake is the thorny issue of Occidental Petroleum's permanence in Ecuador, after the procurator-general, hitherto pressing for the cancellation of its contract, suddenly announced that a renegotiation would be legal.

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