Ecuador a plunge in oil production due to pipeline shutdowns from rains and erosion, costing the country millions in lost revenue. In gas, Ecuador is seeking to double production from its offshore Amistad field through offshore operations with a Chinese jack-up rig. Meanwhile, environmental concerns persist, particularly regarding widespread gas flaring in the Amazon rainforest and a significant oil spill in Esmeraldas, which prompted a state of environmental emergency.
Heavy rains and erosion in the Coca River caused the shutdown of Ecuador’s two main oil pipelines, SOTE and OCP, forcing a halt in major oil production.
The disruptions are projected to cost Ecuador over $300 million in lost revenue, straining its oil-dependent economy.
The national oil company, EP Petroecuador, declared force majeure on the pipelines to protect the infrastructure.
To increase its natural gas supply, Ecuador’s Campo Amistad (Amistad Field) will be subject to offshore well workovers performed by EP Petroecuador and China National Petroleum Corporation.
A new contract with CNPC will mobilize a jack-up rig to double the field’s natural gas production to over 40 million cubic feet per day, supporting the Termogas Machala thermoelectric plant.
Note by Alessandro Bazzoni