Ecuador to Soon Start Closure of ITT Oil Block

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Ecuador's economy minister, Juan Carlos Vega, told Teleamazonas that the country will start shutting down the Ishpingo, Tambococha, and Tiputini oil block, known as the ITT, after August 31. Petroecuador (Quito, Ecuador) operates the oil block in the Amazonian province of Orellana.

In August last year, Ecuadorians supported closing down the ITT Block in a referendum with 59% of the votes. The oil complex, one of Ecuador's biggest, is located in the Yasuni natural reserve, a protected environmental zone and an area where indigenous communities live.

Following the referendum, Ecuador's Constitutional Court gave Petroecuador a period of one year, which expires on August 31, to start closing the asset.

"The process of closing some wells would begin almost immediately," said Vega to the local news outlet.

"There is a clear mandate from the Ecuadorian people to close it.... This government will responsibly initiate the closure process. Due to the environmental and social risks that a premature closure may entail, all the technical arguments and risks are being presented to go to a closure process that does not entail these risks," he added.

According to the ministers' statements, closing the ITT block could take up to five years and five months.

Energy minister Antonio Goncalves also told Teleamazonas that they would begin by shutting down some wells and that soon they would visit the energy asset to show the press and public the start of the closure of the oil complex.

No investments have been made in the ITT block since last year's referendum, said Goncalves.

Based on information from Petroecuador, in August, the ITT registered a production close to 50,000 barrels of oil per day, making it the company's fourth-largest producing asset.

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