22 Sep 2005

Shushufindi Central Has Produced 23 Oil Spills Under PETROECUADOR's Operation

Official documents and photographs demonstrate Petroecuador's poor operational practices, while Plaintiffs' insist on accusing the wrong company

Nueva Loja, September 22, 2005 - During the Judicial Inspection conducted yesterday by the Superior Court of Nueva Loja at Shushufindi Central Production Station, Chevron provided the Court with additional evidence showing Petroecuador's environmental responsibility for the current condition of the former Consortium's facilities. Counsel for Chevron presented the Court with a series of photographs demonstrating the way in which PETROECUADOR disposes of residues from oil pit workovers, crude oil, and other elements into the environment with no prior treatment. The company also submitted to the Court official data registering 23 oil spills at the station and neighboring areas under Petroecuador's sole operation.

Other Highlights:

  • While the Court and lawyers from both parties visited a series of open oil pits constructed by Petroecuador in recent years, Chevron's counsel presented the Court with a series of photos, taken the day prior to the inspection showing a Petroecuador tanker discharging a saline fluid with oil residues from workovers conducted on the pits without prior treatment into a canal located in the Southeast area of the station that empties into a stream that borders the southern area of the Shushufindi Central station.
  • The Court was able to view how the produced water re-injection system works at Shushufindi Central station. The re-injection equipment at this facility was given by Texpet to PETROECUADOR in 1996, but it was not fully operational until 1999, three years after it was delivered. The Judge was also able to witness the absence of crude oil residues and environmental damages at the sites remediated by Texpet.
  • Finally, Chevron Corporation counsel delivered to the President of the Court official information from the National Hydrocarbon Management Agency, in which PETROECUADOR admits that from 1998 on, at least 23 oil spills have taken place at Shushufindi Central Production Station under its operation, both inside the station area, as well as in neighboring zones.

All of these facts constitute clear evidence of Petroecuador's poor operational practices, and that Petroecuador is solely responsible for the current environmental conditions of oil field areas within the former consortium.

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