Ecuador's State Oil Company Petroecuador Declares Force Majeure on its Operations

SEATTLE (Oil Monster): Ecuadorean state oil company Petroecuador declared force majeure on all operations, including crude exports, after two key pipelines suspended pumping, the firm's head said on Thursday.

The state-owned SOTE and OCP oil pipelines suspended pumping earlier this week to protect infrastructure threatened by heavy rains, which sped up erosion in the Amazonian province of Napo.

"Force majeure has been declared so that (Petroecuador) can act with all the tools necessary," Petroecuador chief Leonard Bruns said.

The company also said it had begun shutting down oil wells in the region due to the pause in transport operations.

Ecuador's crude production fell some 133,000 barrels per day (bpd) since the operations were paused, according to a report published on Thursday by the nation's Hydrocarbons Regulation and Control Agency.

The erosion, which began along the Coca River in 2020, has since expanded, damaging oil infrastructure and roadways and now threatening the Coca Codo Sinclair hydroelectric plant, the largest in Ecuador.

Authorities said temporary bypasses are under construction on both pipelines to resume operations, while studies have been authorized for permanent rerouting to avoid the impacted area.

Courtesy: www.reuters.com