(Energy Analytics Institute, Piero Stewart, 9.Oct.2019) — Ecuador’s Trans-Ecuadorian Pipeline System (SOTE) halted operations at 1pm on Oct. 9.
The stoppage was due to the low delivery of crude oil resulting from suspension of operations at oil fields operated by state oil company Petroamazonas EP after being overrun by outside groups, Ecuador’s Ministry of Energy and Non-Renewable Natural Resources (MERNNR) announced in an official statement.
Due to the stoppage, EP Petroecuador, in compliance with the provisions of the Force Majeure or Fortuitous Clause of the contracts that binds it, notified all companies with which it holds current contracts related to the international commercialization of hydrocarbons the Declaration of Force Major or Fortuitous Case, on all operations arising from contractual obligations, during the time in which the country remains under the stress of protests.
Nationwide protests erupted in Ecuador on 3 October after President Lenin Moreno announced cancellation of a $1.3 billion per year fuel subsidy amid implementation of other austerity measures as stipulated in a $4.2 billion loan from the International Monetary Fund (IMF) early this year.
© Energy Analytics Institute (EAI)