Unrest Impacts Petroecuador's Output from Newest Oil Blocks

---

Researched by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Output declined at two of Petroecuador's (Quito, Ecuador) newest oil blocks after protesters closed an oil valve, leading to midstream and upstream disruptions. Attacks on Ecuador's energy infrastructure are not uncommon, as communities often protest for better economic benefits and state services.

Over the weekend, Ecuador's state-owned oil company reported that the community of Waorani de Dikaro, in northern Ecuador's Orellana province, closed an oil pipeline valve that led to pumping and production disruptions at oil blocks 16 and 67. The protesters also entered the facilities and shut off the power supply for related oil wells.

As a result, Petroecuador lost some 3,500 barrels per day (BBL/d) of oil production, starting February 11. Petroecuador said that if the valve cannot be reopened, it will begin a gradual shutdown of the wells at the Amo, Daimi, Iro and Ginta oil fields, leading to a loss of 11,500 BBL/d. No further statement on the matter has been issued since February 11.

Petroecuador assumed the operations of blocks 16 and 67 starting this year, after Repsol's (Madrid, Spain) contract expired December 31. At the time, the two blocks had a combined 106 oil wells in production, 37 reinjected wells and 90 closed wells. Their fields produce API 14.1 crude.

In January, an attack at one of the block 16 platforms led to an operational disruption of 1,000 BBL/d. The company said blocks 16 and 67 were producing 13,500 BBL/d before the attacks.

Petroecuador also said that the number of protests and attacks on its infrastructure in its Orellana and Sucumbios northern fields quadrupled in January, when compared with the same period last year. As a result, Petroecuador lost 1,000 BBL/d of output in the last fifteen days of January.

During the first two weeks of this month, Ecuador has maintained an oil production of slightly more than 480,000 BBL/d, with Petroecuador accounting for about 81% of the total output.

Finally, Petroecuador appointed Maria Elisa Soledispa as its new interim general manager on Saturday. The former general manager resigned on Friday, following a raid by law enforcement offices. Over the past few months, several raids have been conducted throughout Ecuador's public sector amid a series of corruption investigations.

Soledispa has 15 years of experience in the energy sector, including advisory roles for the energy ministry and vice minister of hydrocarbons.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).