Ecuador will use the pipeline that links Peru's northern Amazon oil zone to the Pacific coast to transport crude under a deal reached this week. Quito's Non-Renewable Natural Resources Minister Wilson Pastor hailed the bi-national accord as "true energy integration, in which two countries, Ecuador and Peru, are joining forces and needs." He said Ecuador will pay a fee of $10 per barrel of crude extracted from the southern zone of the Ecuadoran Amazon. A 100-kilometer feeder pipeline will be built from Ecuador's border to the Oleoducto NorPeruano, which runs to Bayovar port in Puira region. The deal could facilitate a major industrial thrust into Ecuador's southern Amazonian region. Most of Ecuador's exported oil currently comes from the northern part of its Amazon region, via the SOTE and OCP pipelines. (EFE, Aug. 9; RPP, Aug. 8; A Barrel Full website)

The US Court of Appeals for the Second Circuit in Manhattan on Jan. 26 overturned an injunction won by Chevon Corporation to block enforcement of what the US oil company claims is a fraudulent, multibillion-dollar judgment in Ecuador for polluting the Amazon rainforest. In reversing the decision made by the US District Court for the Southern District of New York, the Second Circuit held that Chevron may not challenge the approximately $18 billion Ecuadoran judgment before enforcement of that judgment has actually been sought by the Ecuadoran plaintiffs. In its interpretation of the Uniform Foreign Money-Judgments Recognition Act, the court concluded that judgment-debtors like Chevron can challenge a foreign judgment's validity under the Act only defensively and in response to an attempted enforcement. The court found that an effort of enforcement by the Ecuadoran plaintiffs had not yet been undertaken anywhere, and might never be undertaken in New York. While both Chevron and the Ecuadorian plaintiffs have yet to comment on the decision, Chevron has long contended (press release, PDF) that it has never conducted oil operations in Ecuador and that the allegations of environmental and social harm in the Amazon are therefore false.