Twelve of Petroecuador’s thirteen wells have already resumed operation and are increasing their production

Twelve of the thirteen Petroecuador fields have already returned to operation, although some of them remain at low levels in relation to the expected goal, after gradually overcoming the problems due to the impossibility (between December 10, 2021 and January 1, 2022) of being able to transport crude through the Heavy Crude Pipeline (OCP) and through the SOTE, due to the effects of regressive erosion of the Coca river and its tributaries (Quijos and Piedra Fina). This is indicated by the Petroecuador daily report on the production of the state-owned company.

The main fields that contribute to the moment with their production are Libertador with 10,385 barrels (105% of the goal); Shushufindi producing 68,586 (78% of goal); Auca with 71,771 (98.8% of the goal). Additionally, Sacha with 65,235 barrels, with a goal fulfillment of 87.9%. However, at the moment the ITT is still at 19,242 barrels per day when the goal is 37,064, that is, it is meeting 51.9% of the goal. Meanwhile, the Apaika Nenke field has not returned to produce yet, so its record is at 0 barrels.

Thus, Petroecuador’s oil production has returned to almost normal values, since on January 5 it registered 379,620 barrels produced, 84.46% of the goal. Petroecuador’s production has been increasing gradually: on January 3 it reported 234,757 barrels, while on January 4 it reached 316,304. Meanwhile, the production of private companies has also had an increase: on January 3 it was at 72,110 barrels and on January 4 it was at 96,302.

Despite this, oil production controlled by the Energy Regulation and Control Agency registers a significant upturn, one could say unusual, these days, especially with regard to private companies. On January 4, the ARC report indicated that total production (state and private) reached 434,108 barrels per day. Of these, 287,301 corresponded to the state company Petroecuador and 146,808 barrels per day came from private companies. However, the daily average for private companies had normally been 94,000 barrels.

In the case of private companies, it is not really about an increase in production but rather that much of the production that was dammed by the stoppage of crude oil transportation is now being controlled and, in this sense, higher numbers are now being recorded.

According to Fernando Santos Alvite, former Minister of Energy, these important numbers reflect the delivery of crude oil to the control centers, and not necessarily the production itself. For this reason, he considers that the increase to 434,000 is due to the fact that the accumulated production for several days that could not have been pumped is already being delivered.

Meanwhile, he was concerned about the production numbers of the ITT Block, but said that possibly, the low production is due to the fact that, as it is a heavier oil, it takes a little longer to bring it back to full operation.

For his part, Gonzalo González, coordinator of the Petroleum Commission of Ecuador, nucleus of the Quito Chamber of Commerce, from what he has learned, the volume of production of both the state and private oil companies will gradually adjust. He agreed that the high volume reported by ARC on January 4 is probably due to stocks accumulated by the suspension or stoppage.

Regressive erosion is a natural phenomenon that threatens the strategic infrastructure of the country and is located in the El Reventador sector. Thus it has generated the destruction of the section of the highway that connects Baeza with Lago Agrio, it has also prevented the pumping of crude due to the impact on the pipelines and the Shushufindi Quito pipeline, it could destroy at least three towns in the area, and finally, It threatens to damage the catchment works of the Coca Codo Sinclair Hydroelectric Plant.

Ítalo Cedeño assumed the management of Petroecuador

Petroecuador confirmed that Ítalo Cedeño assumed the management of the company only on Tuesday, January 4, after he was appointed on December 28, 2021 by the state board of directors through Resolution No. DIR-EPP-17-2021-12-28.

Ítalo Cedeño was born in Manta, he is a Petroleum Engineer from the Escuela Superior Politécnica del Litoral (Espol). He has postgraduate studies from Harvard University in Boston; by Arthur D Little, in Cambridge; by LUZ from Venezuela in the MS Program in Petróleos.

He has more than 40 years of experience in the hydrocarbon sector, in which he has held important positions in the public and private spheres of the country and the world. He has been president of the International Society of Petroleum Engineers-SPE Ecuador section, he was an advisor to the Executive Presidency of Andes Petroleum / PetroOriental, among others.

Following his appointment, the new general manager ratified its commitment to meet the objectives proposed by the government of President Guillermo Lasso, to strengthen the management of the public company and increase oil production, develop resources in a responsible and sustainable manner, applying good practices.