American Marconi Wireless News - Spill of 1,200 barrels of crude blight Ecuadoran beach

The leak occurred on Wednesday and oil spread out four kilometers (2.5 miles) from the Balao terminal, reaching Las Palmas beach, Environment Minister Jose Antonio Davalos told broadcaster Ecuavisa.

He said crabs and fish have been found covered in oil, and there were "most likely birds as well."

State company Petroecuador, to whom the terminal belongs, would compensate fishermen left high and dry by the spill, the minister added.

The leak has been stopped, said Petroecuador official Rafael Armendariz.

The beach, in the province of Esmeraldas, has been closed to visitors as Petroecuador is engaged in a massive cleanup, nearly complete, of the sand and surrounding water.

As for the cause: "We do not rule out any hypothesis, whether it was mechanical damage, whether it was an operational problem, negligence or even sabotage," said Petroecuador general manager Ramon Correa.

Oil is the South American country's top export -- generating some $13 billion per year.

L.Davis--AMWN