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Petroecuador, the state oil company of Ecuador, declares force majeure in its operations

The head of Ecuador's state oil company Petroecuador announced on Thursday that all operations, including crude imports, were suspended after two pipelines important to the company's operation stopped pumping.

Heavy rains in Napo, a province of the Amazonian region, have accelerated erosion and threatened infrastructure. The SOTE and OCP pipelines owned by the state suspended pumping this week.

Leonard Bruns, Petroecuador's chief executive officer, said: "Force majeure was declared to allow (Petroecuador), to act with all of the necessary tools."

Due to the suspension of transport operations, the company said that it has also begun closing down oil wells.

According to a report released on Thursday by Ecuador's Hydrocarbons Regulating and Control Agency, the country's crude oil production has fallen about 133,000 barrels per daily (bpd).

Since 2020, erosion along the Coca River has spread, damaging oil infrastructure, roads, and now the Coca Codo sinclair hydroelectric facility, the largest one in Ecuador.

The authorities said that temporary bypasses on both pipelines are being constructed to resume operation, and studies have been approved for permanent rerouting in order to avoid the affected area. (Reporting and writing by Alexandra Valencia, Editing by Brendan O'Boyle & Kylie Madry; Writing by Natalia Siniawski)

(source: Reuters)