Ecuador Begins Shuttering Historic 43-ITT Oil Block to Protect Environment

The Ecuadorean government has begun shutting down oil wells in the 43-ITT block within a nature reserve following a referendum to end drilling for environmental reasons. The process is projected to take over five years and will be costly. Indigenous communities will be affected by the cessation of legally mandated funds.

The Ecuadorean government initiated the process of closing oil wells in the 43-ITT block on Wednesday, located in a vast nature reserve. This decision follows a public referendum held last year against drilling in the area due to environmental concerns.

The energy ministry announced that it has shut down the Ishpingo B-56 well, one of the 247 wells in the block. The ministry emphasized that completing the entire process will take approximately five-and-a-half years. Although the constitutional court mandated that Petroecuador should remove the infrastructure within one year, officials acknowledge the process will extend much longer.

'Complying with the closure of ITT is not an easy job; it requires special and technical planning,' Energy Minister Antonio Goncalves stated. Petroecuador has been extracting around 50,000 barrels per day (bpd) from 43-ITT since 2016, contributing to the nation's total crude production of 480,000 bpd.

The government estimates that ceasing drilling will cost over $1.3 billion. The seven Indigenous communities residing in the Yasuni reserve, Ecuador's largest Amazon rainforest reserve, will lose funds they have been receiving from Petroecuador. The government aims for all wells to go offline by December 2029, with final infrastructure removal expected by August 2030.

(With inputs from agencies.)