Released May 24, 2022 | cordoba, argentina
en
Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Ecuador's state-owned energy company, PetroEcuador (Quito), has managed to stabilize oil output at nearly 400,000 barrels per day (BBL/d) following a blackout at Block 12 in Orellana province, deep in the Amazon jungle.
Protests from local groups last year prompted PetroEcuador to declare force majeure over operations in Orellana. Block 12 produces about 28,000 BBL/d and Ecuador as a whole has managed to churn out around 500,000 BBL/d. The nation leans on exports to support its economy.
PetroEcuador said a blackout, caused by unspecified reasons, had curbed production in Orellana. The company also said output was above 400,000 BBL/d on May 8 after the blackout ended, and that it was able to add 3,361 BBL/d of oil production from the Shushufindi field and 4,444 BBL/d from the Ishpingo field in May.
The Ishpingo oil field, which started production in April, is part of the Block 43 Ishpingo-Tambococha-Tiputini (ITT). Block 43 is producing 50,000 BBL/d of oil; it is expected to double heavy crude oil output by December, according to PetroEcuador. Ishpingo produced its first oil on April 13.
Projections to double its ITT oilfields' production toward the end of the year have been maintained despite opposition from environmental and social activist groups. That's especially the case for Ishpingo due to its proximity to the Amazon forest and areas inhabited by indigenous groups.
Ecuadorian oil production is still close to the historic average of about 500,000 BBL/d, with PetroEcuador contributing about 80% of the total output.
Ecuador is the sixth-largest crude oil exporter to the U.S., slightly behind Iraq. For the week ending May 6, the U.S. Energy Information Administration (EIA) reported that the U.S. took in about 350,000 BBL/d of crude oil from Ecuador. Two years ago, that was closer to 100,000 BBL/d.
Ecuador's Energy Plan
Ecuadorian President Guillermo Lasso has pledged to double the nation's oil production to 1 million BBL/d under his tenure. For its part, PetroEcuador is targeting about 495,000 BBL of oil production this year.
The government aims to increase private investments in the oil and gas industry after years of nationalization under the tenure of former President Rafael Correa, who is currently lives in asylum in Belgium. Correa was sentenced in absentia to eight years in jail for graft.
Ecuador, a former OPEC member, is pushing hard to attract private foreign companies to invest heavily in the country's upstream, downstream and midstream sectors. The move comes after turbulent times under Correa, and as many international oil companies adjust their budgets to focus on reducing the carbon intensity of their operations as part of the energy transition. Despite a business-friendly government, Ecuador is not immune to transport infrastructure failures and closures due to soil erosion and social protests.
At the helm of increasing oil output is newly-appointed Energy Minister Xavier Vera-Grunauer, who was welcomed to the cabinet earlier this month. Vera-Grunauer will have the job of pushing forward with Lasso's energy contract renegotiation, which is aimed at allowing private companies to have a larger role in the energy sector.
So far, some 23 companies have voiced their interest in migrating their contracts, according to the Ecuadorian energy ministry. Additionally, Ecuador is expected to launch the Intracampos II tender later this year, with the aim of increasing private involvement in the oil and gas industry.
Industrial Info is tracking 80 oil and gas production projects in Ecuador, worth more than US$600 million. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can click here for detailed project reports.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Protests from local groups last year prompted PetroEcuador to declare force majeure over operations in Orellana. Block 12 produces about 28,000 BBL/d and Ecuador as a whole has managed to churn out around 500,000 BBL/d. The nation leans on exports to support its economy.
PetroEcuador said a blackout, caused by unspecified reasons, had curbed production in Orellana. The company also said output was above 400,000 BBL/d on May 8 after the blackout ended, and that it was able to add 3,361 BBL/d of oil production from the Shushufindi field and 4,444 BBL/d from the Ishpingo field in May.
The Ishpingo oil field, which started production in April, is part of the Block 43 Ishpingo-Tambococha-Tiputini (ITT). Block 43 is producing 50,000 BBL/d of oil; it is expected to double heavy crude oil output by December, according to PetroEcuador. Ishpingo produced its first oil on April 13.
Projections to double its ITT oilfields' production toward the end of the year have been maintained despite opposition from environmental and social activist groups. That's especially the case for Ishpingo due to its proximity to the Amazon forest and areas inhabited by indigenous groups.
Ecuadorian oil production is still close to the historic average of about 500,000 BBL/d, with PetroEcuador contributing about 80% of the total output.
Ecuador is the sixth-largest crude oil exporter to the U.S., slightly behind Iraq. For the week ending May 6, the U.S. Energy Information Administration (EIA) reported that the U.S. took in about 350,000 BBL/d of crude oil from Ecuador. Two years ago, that was closer to 100,000 BBL/d.
Ecuador's Energy Plan
Ecuadorian President Guillermo Lasso has pledged to double the nation's oil production to 1 million BBL/d under his tenure. For its part, PetroEcuador is targeting about 495,000 BBL of oil production this year.
The government aims to increase private investments in the oil and gas industry after years of nationalization under the tenure of former President Rafael Correa, who is currently lives in asylum in Belgium. Correa was sentenced in absentia to eight years in jail for graft.
Ecuador, a former OPEC member, is pushing hard to attract private foreign companies to invest heavily in the country's upstream, downstream and midstream sectors. The move comes after turbulent times under Correa, and as many international oil companies adjust their budgets to focus on reducing the carbon intensity of their operations as part of the energy transition. Despite a business-friendly government, Ecuador is not immune to transport infrastructure failures and closures due to soil erosion and social protests.
At the helm of increasing oil output is newly-appointed Energy Minister Xavier Vera-Grunauer, who was welcomed to the cabinet earlier this month. Vera-Grunauer will have the job of pushing forward with Lasso's energy contract renegotiation, which is aimed at allowing private companies to have a larger role in the energy sector.
So far, some 23 companies have voiced their interest in migrating their contracts, according to the Ecuadorian energy ministry. Additionally, Ecuador is expected to launch the Intracampos II tender later this year, with the aim of increasing private involvement in the oil and gas industry.
Industrial Info is tracking 80 oil and gas production projects in Ecuador, worth more than US$600 million. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can click here for detailed project reports.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
