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Ecuador to take control of heavy petroleum pipeline till brand-new tender introduced

Ecuador's federal government will take over operations on a heavy crude oil pipeline until a fresh tender is released, the nation's energy and mines energy said on Monday.

The transfer from OCP Ecuador, a personal consortium which had actually run the pipeline, to the government will be carried out on Nov. 30, the ministry added in a declaration.

OCP Ecuador and the government tattooed a mediation arrangement in January for the handover of the pipeline, which can carry up to 450,000 barrels each day regardless of operating below capability.

OCP Ecuador's contract had actually expired Jan. 20.

The choice (to put the pipeline under federal government control) was taken after examining OCP Ecuador's ask for an extension, the ministry said. Nevertheless, the agreement and the hydrocarbons law do not allow an extension, but the transfer to the state.

OCP Ecuador did not right away react to a request for comment.

Petroleum will continue moving through the pipleline as the transfer is being carried out, the ministry said, including that in coming weeks it will announce its management plan and brand-new tender standards.

The state likewise runs the SOTE oil pipeline.

(source: Reuters)