SOTE collapses due to regressive erosion, while production registers steep decline

Petroecuador EP reported through a press release that the pipeline of the Trans-Ecuadorian Pipeline System (SOTE) collapsed in the Piedra Fina sector, where regressive erosion is found. However, the state company assured that there are no environmental damages, or hydrocarbon spills in the area. This thanks to the timely decision to suspend the pumping of crude from the SOTE and the drainage activities carried out in a preventive manner.

Meanwhile, the country’s oil production was at the Monday, December 13, at 229,336 barrels per day, which represents a drop of 149,694 barrels per day when compared to the production that had been recorded in October, which was 479,030 barrels per day. This means a reduction in overall 31%.

However, the greatest weight of the fall is in Petroecuador’s production, which stood at 1 December 1359,657, when it was normally around 374,925 barrels per day). This is a reduction of 57.4%.

The private ones fell to 69,679, when in recent months they stood at 104,104 barrels per day. The drop is due precisely to the impossibility of continuing to produce in the same volumes by Petroecuador and private companies, due to the suspension of crude pumping.

Indeed, since December 8, the Heavy Crude Oil Pipeline (OCP) managed by private companies and Since December 10, the Trans-Ecuadorian Pipeline System (SOTE) of Petroecuador they stopped transporting crude oil, due to the threat that looms over these pipelines, due to regressive erosion.

For its part, Petroecuador has already declared the Force Majeure clause, which anticipates that it could breach certain export commitments. Meanwhile, yesterday the Ministry of Finance did not confirm what is the daily loss that this lack of production and pumping of crude would generate.

According to President Guillermo Lasso, the suspension of crude oil transportation due to regressive erosion could be overcome in the next 17 days, “if the rains allow it.”

The solution to the problem includes the implementation of the seventh variant of the pipeline complex composed of the Trans-Ecuadorian Pipeline System (SOTE), the Heavy Crude Oil Pipeline (OCP) and the Shushufindi Quito pipeline.

“Yes we are working on what we call the seventh variant of this pipeline complex, for, in 17 days, if the rains allow us to have overcome this problem, obviously, that the 17 days will generate a negative impact, because there will be a loss of oil production (… ) then we will see how to mitigate negative impacts in 2022 ″, said the president.

The subject was also covered in the National Assembly. This time there was a resolution approved with 98 votes, which determines that the Ministers of Transport and Public Works, Marcelo Cabrera, of Energy and Non-Renewable Resources, Juan Carlos Bermeo; the manager of Petroecuador, Pablo Luna and the director of the National Risk Management Service, Cristian Eduardo Torres, must appear within a maximum period of 30 days.