ITT production plummets due to OCP shutdown and electrical problems – La Nación

by times news cr

2024-09-23 18:30:30

As of June 16, 2024, the IT recorded a production of 51,000 barrels per day. Since June 17, with the shutdown of the OCP, the ITT production has been falling to 7,639 barrels per day. At the same time, the country risk has soared to more than 1,421 points.

Six days ago, that is, on June 17, 2024, the Heavy Crude Oil Pipeline (OCP Ecuador) announced that he had to suspend its operations and close the valves through which the oil passes.

It was declared Force Majeure due to the increasing risk of damage to the pipeline infrastructure, which is located in the Gonzalo Díaz de Pineda parish, El Chaco canton.

This is due to the fact that the intense rains of the last few days, which have gained strength in provinces such as Napo, have had consequences such as the significant acceleration of the regressive erosion process on the banks of the Quijos River.

The OCP transports 40% of the Ecuadorian oilespecially crude oil that comes from the ITTThis crude oil is heavy and is called Oriente P, under production by Petroecuador.

The OCP shutdown forced Petroecuador to declare force majeure on crude oil exports on June 20. In addition, customers were notified in order to avoid fines and penalties for delays in oil shipments.

The contingency plan implemented by the state oil company included the storage of crude oil and forced shutdown of oil wells.

The final result is that, as of June 23, the total oil production fell to 392,730 barrels per day, when until June 16 it reached 485,533 barrels per day. This means a total drop of 92,803 barrels in production, taking into account both Petroecuador as well as private companies.

This oil collapse, with the consequent impact on state revenues, has caused an upward escalation of the country riskThe index reached 1,421 points, 307 points more than the 1,114 points recorded at the beginning of May.

One of the most affected fields is the ITT

As of June 16, 2024, the ITT recorded a daily production of 51,470 barrels of heavy crude oil. However, as of June 23 (last available data), production barely registered 7,639 barrels. This means a drop of more than 85%.

Petroecuador shut down 55 wells in the ITT area due to the problems recorded in OCP. The ITT field was already in the eye of the storm because, until August 31, 2024, the result of the popular consultation and the opinion of the Constitutional Court on the complete cessation of operations and definitive closure.

Other fields where production fell were Apaika Nenke, block 31which is next to the ITT block, and the field Eden Yuturiwhich is at 34% of its capacity.

The problem with the OCP was compounded by the massive blackout on June 19, which caused the shutdown of wells in fields such as Auca, Sacha, Lago Agrio, Shushufindiamong others. Production in these fields fell by up to 7%.

This crisis has even caused the Esmeraldas refinery to work at less than 30% of its capacity due to a lack of crude oil to process. However, Petroecuador is said to be making every effort to maintain the normal supply of fuel in the country. (JS)

Source: LA HORA newspaper

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