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ECUADOR: Oil companies’ withdrawal cited as “force majeure”

The Ecuadorian government is now using the term “force majeure” (literally “major force” or “Cause beyond control”) to describe the opposition to oil concessions on indigenous land in the Amazon. The term is usually used to describe natural catastrophes or major upheavals like war, which can void a legal contract. Because of this change in provision, two transnational companies have been allowed to cancel their oil concession contracts with the Ecuadorian government. These companies, Burlington Resources of Texas and CGC/ChevronTexaco, are claiming that the “force majeure” is the opposition of the Kichwa, Shuar, and Achuar people. This change means the companies are free from their obligations to the Ecuadorian government to carry out oil activities in Blocks 23 and 24 and will respect the decision of the indigenous communities to oppose oil development. While the indigenous communities are welcoming a retreat from oil company concessions, they are worried that the government will lose guaranteed revenues and will therefore try to manipulate their communities to ensure the oil companies’ return.