In a bid to improve security in areas bordering Colombia, the 16 private oil producers in Ecuador plus state Petroecuador have arranged a deal under which they can pay the military for protection. Most of Ecuador’s oil comes from northern fields near the Putumayo River in the Amazon region, close enough to the border that guerrilla groups – thought to originate in Colombia or be influenced by Colombian rebels – have become a threat to operations (see page 7). The groups have attacked Ecuador’s main oil pipeline at least three times and have kidnapped 10 oil workers. And with construction starting on a new heavy crude oil pipeline, companies are even more concerned about protecting their investment.
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