Uncertainty weighs on the Andean energy sector

Collapsing governments and crackdown on public dissent showcase growing instability

Political risk is in the ascendancy across the Andean region of Latin America after a year marked by protests, violent repression and musical chairs at the top of government. Peru and Ecuador have been hit particularly hard by the recent turmoil. In May, Ecuadorian president Guillermo Lasso triggered a new general election to avoid impeachment, while Peruvian President Pedro Castillo was ousted from power in December after attempting a coup d’etat against his own government.   Widespread demonstrations and violence have rocked both countries, but Ecuador’s oil and gas sector has been especially affected. “Protests [have] resulted in an 11% fall in production by NOC Petroecuador so far this y