The aim of the proposal is to provide a creative solution for the threat posed by the extraction of crude oil in the Ishpingo-Tiputini-Tambococha (ITT) oil fields, which are located in the highly vulnerable area of Yasuní National Park. The proposal would contribute to preserving biodiversity, reducing carbon dioxide emissions, and respecting the rights of indigenous peoples and their way of life.

Ecuadorian President Rafael Correa has stated that the country’s first option is to maintain the crude oil in the subsoil. The national and international communities would be called on to help the Ecuadorian government implement this costly decision for the country. The government hopes to recover 50% of the revenues it would obtain by extracting the oil.

The procedure involves the issuing of government bonds for the crude oil that will remain “in situ”, with the double commitment of never extracting this oil and of protecting Yasuní National Park.

It is important to keep in mind that if Ecuador succeeds in receiving the hoped for amount – estimated at 350 million dollars annually – it would only be for a period of ten years beginning after the sixth year, since production and thus potential revenues would progressively decline at the end of that period.

A more promising alternative would be a strategy to provide the government with the 50% of resources in such a way as to provide a consistent income for an indefinite period of time. This resources would be channelled towards activities that help to free the country from its dependency on exports and imports and to consolidate food sovereignty.

 Download the concept document on the proposal 481.62 Kb
 

 Download an Oilwatch publication on the proposal to Keep Oil Underground 7.56 Mb

Article 32 of the Hydrocarbons Law establishes that the exploitation of deposits of heavy crude oil of less than 15 degrees API gravity will be subject to “integral economic planning directed by the Ministry of the sector.”

Article 91 of the current Ecuadorian constitution recognizes the Principle of Precaution and states that “preventive measures will be taken in the event of doubts over the impact or negative environmental consequences of any action or omission, even if there is no scientific evidence of damage. Without prejudice to the rights of those directly affected, any individual or legal entity, or group of people, can undertake the actions foreseen in the law for the protection of the environment.”

A transcendental decision that will define Ecuador's future

Download the  powerpoint presentation 3.50 Mb
Watch the presentation video

Carlos Larrea M.¹

The oil Project Ishpingo-Tambococha-Tiputini (ITT) is located the Amazon Rainforest, in block 43, crossed by the rivers Napo, Tiputini and Yasuní, on the eastern border with Peru. This block contains one of the most abundant heavy oil reserves in the country, yet it is also part of the Yasuní National Park, considered one of the most important biodiversity reserves on the planet which also includes the Intangible Zone, home of the voluntarily isolated and not contacted indigenous peoples, the Tagaeri and the Taromenane.

Watch the video presentation by Dr. Carlos C Larrea of the Universidad Andina Simón Bolivár about the economic model of the proposal.