Page 13 - LatAmOil Week 07 2021

LatAmOil ECUADOR LatAmOil

Arauz (front left) paid a visit to the US last week (Photo: @ecuarauz/Twitter)

Oil industry waits to learn outcome

of Ecuador’s presidential election

ECUADOR is heading for a second round of government would promote efforts to increase
presidential elections, as none of the contenders crude production. However, he has also mooted
secured a majority in the vote held last week. The plans for increasing investment in renewable
outcome of the next round is likely to affect the energy and tightening fuel quality standards in
country’s oil policy, especially if the winner is a order to reduce pollutions.
left-wing candidate. Pérez, meanwhile, has made his opposition
As of press time, election monitors had iden- to the oil industry clear. Before running for pres-
tified the top three candidates. They confirmed ident, he was an activist for indigenous rights
that left-leaning Andrés Arauz had taken the and the protection of water resources. He has
top spot, winning 32.7% of the vote. At the same consistently opposed mining projects and has
time, they were not able to determine whether called for Ecuador to invest in and make the
right-leaning Guillermo Lasso or indigenous transition to renewable energy sources.
activist Yaku Pérez, each of which won nearly Arauz’s stance on oil development is more
20%, had secured second place. ambiguous. The candidate has spoken exten-
Pérez, for his part, has demanded a recount, sively about environmental issues, calling for
citing Lasso’s narrow 33,000-vote lead and action on issues related to climate change and
alleging that there had been attempts to stifle pollution. However, he is also the protégé of
indigenous representation. But on February 17, former President Rafael Correa, who was fond
Ecuador’s National Electoral Council suspended of using oil revenues to fund social welfare pro-
its review of around 6mn ballots. Consequently, grammes, and is widely expected to appoint his
it is still not clear whether Lasso or Pérez will mentor to serve as his top advisor.
face Arauz in a run-off election. Additionally, Arauz met with Wall Street
Lenin Moreno, the country’s current presi- leaders and representatives of the International
dent, is due to leave office on May 24. Monetary Fund (IMF) during a visit to the US
If Lasso turns out to be the eventual victor earlier this week. According to Bloomberg, he
of the run-off, Ecuador is likely to court inter- did so in a bid to reassure investors that his gov-
national oil companies (IOCs). The conserv- ernment would not abandon its financial obli-
ative candidate, a career banker, has said his gations. ™

Week 07 18•February•2021 www. NEWSBASE .com P13