2024-09-24 08:23:30
The OCP shutdown has caused a drop in national oil production. As of June 23, it stood at 392,730 barrels of oil per day.
Ecuador’s oil production continues to fall following the halt in operations of the OCP (Heavy Crude Oil Pipeline) since June 17, 2024, due to the risks to the pipeline from erosion by the Coca River.
On June 23, 2024, domestic oil production reached 392,730 barrels of oil per day, a decrease of 92,803 barrels from June 16, when domestic production reached 485,533 barrels.
This situation forced the state-owned Petroecuador to declare “force majeure” in crude oil exports on June 20. The state-owned company reported that it had already notified its clients of this decision in order to avoid fines and penalties for delays in oil shipments.
The OCP transports 40% of Ecuadorian oil, especially the oil from the ITT oil field, which produces heavy crude oil and is managed by the state-owned Petroecuador.
Faced with this situation, the state oil company Petroecuador announced that it had launched a contingency plan. The contingency plan was activated on June 17, 2024, and includes the storage of oil and the shutdown of oil wells.
In fact, on June 19, 2024, the ITT produced only 24,498 barrels per day, which is less than half of its usual production of 50,000 barrels per day. Petroecuador shut down 55 wells in this oil area due to problems with the OCP pipeline, reported the Agency for the Regulation and Control of Energy and Non-Renewable Natural Resources (Arcernnr). Other changes where production fell were Apaika Nenke, block 31, which is next to the ITT block, both located in the Amazonian province of Orellana, in the northeast of the country. Production at the Edén Yuturi field also fell by 34% due to the stoppage of OCP.
The national blackout that the country experienced on June 19, 2024 also caused the shutdown of oil wells in several oil fields in the Amazon, such as Palo Azul, Lago Agrio, Shushufindi, Sacha and Auca. In these fields, production fell between 6 and 7% due to problems with the interruption of the national electricity service. As a result of all these inconveniences, it is planned that crude oil deliveries pending for June will be rescheduled,” Petroecuador added.
What about fuel supply?
Petroecuador reported through its X network that the company’s staff “works uninterruptedly and makes its best efforts to keep the infrastructure operational” and “guarantee the supply of derivatives to the domestic market.” The Esmeraldas Refinery, the largest in the country and managed by Petroecuador, reduced its operation due to the lack of oil.
The plant can process 110,000 barrels of oil per day, but on June 19, 2024, it only processed 29,196 barrels, or it operated at 26% of its total capacity. In contrast, the La Libertad refinery, which can process up to 45,000 barrels per day, only operated at 65% on June 20, 2024. That’s because it could only process 29,471 barrels of oil.
The origin of the problem
The OCP is a buried pipeline; however, due to erosion, some 140 meters of the duct were left practically uncovered and in the air, at kilometer 102 on the left bank of the Coca River, on the stretch of the road between Quito and Lago Agrio.
This part of the pipeline is located specifically in the parish of Gonzalo Díaz de Pineda, in the Amazonian canton of El Chaco, in Napo. OCP said that although the pipe was exposed, it did not break and there was no spill.
He then proceeded to empty the pipeline and announced that he plans to build a ‘bypass‘ on that stretch to resume operations, although it has not been reported how long the work will take. But it is not the only stretch exposed to risks due to erosion by the Coca River.
Erosion accelerated on the left bank of the Coca River, in the area of the Malo and Loco rivers, given that both rivers experienced significant flooding on June 16, 2024, putting another section of the OCP pipeline at risk.
Lateral erosion is advancing along the Loco River, a tributary of the Coca River, and is putting the OCP oil pipeline and a bridge on the E-45 highway or the Quito Lago Agrio highway at risk in the El Chaco sector.
“In the Loco River, erosion has changed the original course of the river and continues to discharge directly into the Coca River bed, which is why the slope has increased and may cause greater regressive erosion,” warns the Celec report. In addition, the report notes that lateral erosion may destroy the bridge over the Loco River on the E45 highway or the Quito-Lago Agrio highway.
By: PRIMICIAS