17 Nov 2005

The Inspection to Shushufindi-38 was not completed

BJ a Petroecuador contractor is performing a workover at the well

Nueva Loja, November 17, 2005. The Superior Court of Nueva Loja decided to suspend Judicial Inspection No. 32 to Shushufindi-38; it shall be taken up again at a future date which shall be informed of at a proper time. Upon arriving to the site, Judge Efraín Novillo, President of the Superior Court and both parties' lawyers observed the presence of several vehicles and workers of BJ, a Petroecuador contractor, which is working at the well's platform.

Petroecuador's contractor is performing a no-tower workover at this well and is using hydrochloric and hydro-fluoride acids. These works constitute a real threat for the people in the neighboring areas, as was explained by BJ officials to the Judge and lawyers of the parties.

Based on this information, Judge Efraín Novillo and both parties' lawyers agreed on continuing the Inspection in the near future, in order to protect the integrity of those taking part in the diligence. Nevertheless, both parties' technical teams were able to begin the water and soil sample gathering in the well's far-off areas, while both parties presented their initial allegations at the patio of a nearby house.

It should be reminded that the environmental remediation of this well was to be performed by Petroecuador. According to May 4th, 1995 contract the Ecuadorian Government and Petroecuador did not include this well inside the inventory of sites that had to be remediated by Texaco Petroleum Company (Texpet).

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