Ecuador’s NOC Declares Force Majeure After Pipeline Leak

Ecuador’s state-run oil company, Petroecuador, has declared force majeure at the operations of its SOTE pipeline after a landslide ruptured the pipeline, releasing tens of thousands of barrels of oil. Petroecuador has yet to determine the size of the spill, but has so far removed 225,000 cubic metres of material that collapsed on the pipeline. The company says the force majeure will last up to 60 days in a bid to give it enough time to take all necessary actions to minimise the incident.

Petroecuador added it has enough oil in its inventories to supply the local fuel market; however, it has suspended exports of the Oriente crude due to the force majeure clause. Oriente crude is one of two varieties that the South American country produces.

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Ecuador’s last major oil spill occurred in July 2023 when ~1,200 barrels of crude spilled in the Pacific Ocean. The spill occurred after a tank belonging to Petroecuador exceeded its maximum capacity of 188 barrels and spilled into a containment pool at the company’s Esmeraldas maritime terminal. Around four kilometres of coastline were affected by the spill.

Ecuador is one of South America’s top oil producers. In 2021 Ecuador’s production clocked in at 550,000 barrels, the 28th highest in the world. Oil consumption in the country is about 260,000 b/d, with the balance being exported. Ecuador has oil reserves of more than 8 billion barrels, ranking the country as number 19 globally.

In 2023, Ecuadorians voted against drilling for oil in Yasuni National Park, home to the Tagaeri and Taromenani who live in self-isolation. Yasuni, designated a world biosphere reserve by UNESCO in 1989, encompasses a surface area of over 1 million hectares (2.5 million acres); 121 reptiles species, 610 species of birds and 139 amphibian species. Former Ecuadorian President Guillermo Lasso strongly advocated for oil drilling in Yasuni in a bid to boost oil exports. However, the results of the referendum meant that Petroecuador was forced to abandon operations there.

By Alex Kimani for Oilprice.com

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