Oil talks being held in Ecuador

Protest leaders from two oil-rich Amazon provinces where violent demonstrations brought petroleum production to a halt last week have started negotiations in Ecuador’s capital Quito with President Alfredo Palacio’s government.

A delegation of 50 protest leaders, including a number of mayors and regional governors from Orellana and Sucumbios provinces, arrived to discuss their demands that oil companies provide more jobs to local residents and make income tax and royalty payments directly to local authorities.

State exports of crude oil were suspended on Thursday after the state-run company Petroecuador notified customers that it could not guarantee overseas deliveries.

The violence also led 10 foreign oil companies to cease operations in the two provinces, where they normally produce about 160,000 barrels a day. About 90% of Ecuador’s crude is located in the zone.