In compliance with the mandate of the 2023 Popular Plebiscite, the government of Ecuador has presented a timeline for the total shutdown of the ITT Oil Block in the Amazon, estimating that this process will take at least five years and five months.
The progressive closure plan will be developed in five phases that will address fundamental aspects such as updating the shutdown program for the wells, carrying out engineering studies, the actual execution of the closure, and the handover of the areas to the indigenous communities. The process of shutdown closure and plugging of 246 wells in the ITT will begin on August 30, 2024. Between August 2025 and August 2030, the surface installations of the wells will be dismantled, while in 2026 and 2027 the storage platforms will be adapted, and debris will be removed from Yasuní Park. Finally, between 2029 and 2034, the reforested areas will be handed over to the local communities.
The President of Ecuador, Daniel Noboa, has requested the Constitutional Court to initiate the follow-up phase, in which the Court must thoroughly review the actions that will be implemented by the Executive to ensure compliance with the popular decision reflected in the consultation. Consequently, the Constitutional Court will have to evaluate the mechanisms applied by the State to overcome possible challenges that may arise during the process, ensuring that the ITT crude oil remains indefinitely in the subsoil. Given the magnitude of this task, it is inevitable to ask how Ecuador will handle the economic challenges implied by the loss of income from oil extraction in the ITT Block?
