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Losses in Ecuador already reach $500 million, in a scenario that recalls what happened in October 2019

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The General economic losses, caused by the indigenous strike, have so far reached $500 million, reported the Deputy Minister of Economy, José Gabriel Castillo. For the official, in this type of measure not only the State loses, but also the productive sector. He explained that from what has been reviewed, the Chambers of Commerce and Production report losses of around $450 million, to which oil losses due to well closures should be added. According to the latest estimate from the Ministry of Energy, losses in oil production would reach $51 million.


Only in the oil area do the figures handled by the Ministry of Energy indicate that in the last 11 days production has decreased by more 570,000 barrels of oil. The biggest loss is recorded Petroecuador with 468,133 barrels less of production and private companies with 101,678 barrels of reduction.

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Thus, the Ministry reported that stoppages the State stopped receiving $ 51 million, money that could have gone to education, health and social work. To date, they have closed 918 wells, mostly from Petroecuador, in the provinces of Orellana, Sucumbíos, Pastaza and Napo.


Meanwhile, the General Manager of EP Petroecuador, Ítalo Cedeño, reported this Thursday, June 23, 2022, that due to the national strike, the state oil company has stopped producing about 40% of crude oil in its oil fields located in the provinces of Orellana and Sucumbíos. Only in Petroecuador is there 781 wells shut down and 31 paralyzed towers, Figures that would represent approximately $45 million in direct economic damage to the country, considering a price of WTI (Ecuadorian crude marker) of $100, not counting damage to hydrocarbon infrastructure, theft and sabotage of equipment, among other actions caused by groups outside the company that seek to violate its facilities and stop operations.

As a consequence of these acts of sabotage and vandalism, He also pointed out that several generation plants that provide electricity to the oil blocks, small pipelines, have stopped, and currently the Trans-Ecuadorian Pipeline System (SOTE) is without crude oil to pump, which is why Force Majeure was declared in a timely manner throughout the company’s value chain, to avoid lawsuits and fines for previously acquired contractual commitments. “The effects are in all the oil fields, especially in Sacha, Lago Agrio, Auca, Libertador, Coca Payamino – Yuralpa, Cuyabeno, Shushufindi and Indillana, which are continuously attacked by protesters. We are making our best efforts with extended hours so as not to stop operations, since the situation is worrying and if it continues in the same way we will only have three to four days of operational life to be able to work in these conditions”, he indicated.

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castle too He said that to all this panorama we must add the patrimonial losses, which have had to do with the fire in Police barracks, vehicles and damages in the cities. On this last point, Castillo said, we are waiting for the various affected entities to give us an official report.

Lament that these losses economic conditions are going to have an impact on growth forecasts, which until before the strike were very optimistic and they were being updated upwards. Whether the good expectations are met now is going to depend on whether this problem can be resolved, he said.

What happens at the moment in Ecuador it recalls the enormous losses caused by the October 2019 strike, when the economic losses were calculated at around $800 million. “If we continue on this same route, we will finish at the same level,” Castillo said.

Nevertheless, the indigenous protest has also affected other strategic sectors such as electricity and mining.

This is what the Tisaleo Station looked like taken over by indigenous people. The indigenous people asked to turn off the station seeking to leave Guayaquil without electricity. Courtesy: Celec Photo: The Universe

On the night of Wednesday, June 22, more than 300 people from Several indigenous and peasant communities took over the Tisaleo substation, located in Tungurahua, which operates at a level of 500,000 volts. The protesters entered the facilities and demanded the disconnection of this substation. According to the statements of station personnel, what they wanted was to turn it off in order to leave Guayaquil without power. This is because this substation, essential for the country, is part of the extra high voltage transmission system, which carries electrical energy from the Coca Codo Sinclair hydroelectric plant to the Chorrillos substation in Guayaquil. In a first action they held the operators, but later released them, although the facilities continue to be taken peacefully.

Celec EP Transelectric together with the National Electricity Operator reported that despite these problems they carry out the necessary coordination and guarantee, by conditioning the system, the electric power service.

the minister of Energy and Mines, Xavier Vera Grunauer, highlighted the Government’s efforts to guarantee electricity service during the national emergency, due to the stoppage of activities. He stressed that the operation of the electrical system has not stopped, because “it has been a work of continuous communication between the sectors.” Minister Vera, however, also warned that they have received information that they are considering a possible takeover of the Coca Codo Sinclair Hydroelectric Power Plant, the most important in the country.

The Coca Codo Sinclair hydroelectric plant remains guarded by the military, in order to prevent any type of excess. Photo: Courtesy Photo: The Universe

Incidents have also occurred in the mining area. On June 21, it was also known that hooded people entered a mining camp belonging to the Lowell company and set it on fire. These damages have not yet been accounted for. Meanwhile, according to the Ministry of the branch, the daily losses of small mining would be around $1.4 million. (YO)

One of the eight camps of the Warintza mining project, located in the Coordillera del Cóndor, was vandalized on June 21. Field workers are safe thanks to an immediate evacuation. Photo taken from Social Networks Photo: The Universe

Source: Eluniverso

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