Latest News

Ecuador's Petroecuador declares force majeure over Napo crude exports, sources say

Ecuador's state oil company, Petroecuador, has stated force majeure over shipments of Napo heavy crude for exports following the shutdown of a key pipeline and oil wells due to heavy rains striking the nation, sources stated on Friday.

Extreme rains over the weekend required the shutdown of 3 hydroelectric plants, the suspension of an essential heavy crude pipeline run by personal companies and a momentary closure of heavy oil-producing wells.

A nationwide electricity interruption that struck domestic users, healthcare facilities and the capital's subway system followed the rains this week. The government attributed the electrical energy outage to a defective transmission line.

Ecuador's independently run OCP pipeline chose to shut valves and stop pumping heavy crude on Monday as a preventative measure as heavy rains accelerated erosion surrounding the facilities, OCP stated.

As part of the force majeure declaration, Petroecuador informed customers that 2 tenders that were prepared to be granted this week to designate crude freights for July shipment were held off to late June, the sources added.

Petroecuador has actually not defined for how long the force majeure, which validates the cancellation of arranged cargoes in special scenarios, will last. It told clients that brand-new loading windows would be assigned as quickly as the pipeline reboots, rescheduling pending deliveries.

The state business did not right away respond to a request for comment.

Petroecuador's crude production fell to some 338,500 barrels per day

(source: Reuters)