This is what Ecuador loses for each day that oil pumping is suspended by the OCP – La Nación

by times news cr

2024-09-19 16:17:22

The Heavy Crude Oil Pipeline will remain out of operation for 10 more days, the Ministry of Energy said

He Heavy Crude Oil Pipeline (OCP) Ecuador will remain out of operations for 10 more days, said the acting Minister of Energy, Roberto Luque, this June 25, 2024.

The company suspended pumping heavy crude oil on June 17 due to the risk of its infrastructure collapsing due to the advance of erosion. Coca River regressionin Sucumbíos.

The temporary suspension of the OCP operation forced Petroecuador to shut down some wells in Block 43 – ITT and blocks 16 and 67, located in the province of OrellanaIn addition, it declared a state of force majeure to justify its failure to comply with crude oil export commitments.

According to information from PetroecuadorEcuador has stopped producing and exporting more than 37,000 barrels of oil per day. On June 24, it reached a production of 390,000 barrels. This means a drop of about 60 thousand barrels of crude oil compared to the daily average in May of this year.

The fall of the Ecuador’s oil production coincides with a recovery of the crude oil price on the international market, which currently stands at $80 a barrel. Therefore, the country has lost revenues of around $3 million for each day of suspension. If the stoppage lasts 15 days, as Luque estimates, Ecuador’s losses will exceed $40 million.

Regressive erosion

Minister Luque also referred to the Regressive erosion of the Coca River. This natural phenomenon has threatened the entire oil infrastructure in the parish of San Luis, canton El Chaco, parish of Sucumbíos. The official assured that the progress of the phenomenon forced the OCP to stop operations and that, currently, this private company is building a new one temporal variant to continue its operation.

By: EL COMERCIO

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