EP PetroEcuador Manager Supervises Terminal Operations [Video]

(Energy Analytics Institute, Jared Yamin, 27.Sep.2018) — EP PetroEcuador General Manager Pablo Flores supervised operations at the El Chorrillo, Pascuales and a Estación de Transferencia Tres Bocas Transfer Station in the province of Guayas.


EP PetroEcuador Controls Fire at Esmeraldas Refinery AOV 14 Tank

(Energy Analytics Institute, Jared Yamin, 27.Sep.2018) — Today at approximately 12:10 pm a fire was reported at the Esmeraldas Refinery AOV 14 Asphalt tank.

The EP PetroEcuador fire brigade located at the refinery acted immediately to smother the flames and reduce harm to the environment and the other facilities related to the industrial plant. No injuries were reported and operations were not affected, announced EP PetroEcuador in an official statement on its website.

Officials with EP PetroEcuador continue to analyze the cause of the fire in order to implement corresponding corrective measures.


EP Petroecuador Detects Illegal Connection at Shushufindi Refinery

(Energy Analytics Institute, Piero Stewart, 15.Sep.2018) — EP Petroecuador detected a clandestine connection in the liquids line of the northern section of the gas capture station of the Shushufindi Refinery.

Technical personnel at the company immediately implemented a contingency plan to eliminate the illegal connection, which was detected on September 15, 2018, reported the state oil company in an official statement on its website.



Chevron Wins Ecuador Rainforest ‘Oil Dumping’ Case

(BBC, 8.Sep.2018) — An international tribunal in The Hague has ruled in favour of the US oil company, Chevron, in an environmental dispute with the government of Ecuador.

Chevron had been ordered to pay $9.5bn (£7.4bn) compensation to thousands of residents in Ecuador’s Amazon region.

They accused the company of dumping toxic waste in local lakes and rivers of the Lago Agrio region for decades.

The court said that the 2011 Ecuador Supreme Court ruling had been obtained through fraud, bribery and corruption.

The oil giant now stands to be awarded hundreds of millions of dollars in costs by The Hague’s Permanent Court of Arbitration.

Chevron maintained that it never owned any assets in Ecuador.

The alleged environmental damage was done by Texaco between 1964 and 1992. Texaco was later acquired by Chevron.

Chevron has argued that Texaco spent $40m ($31m) cleaning up the area during the 1990s, and signed an agreement with Ecuador in 1998 absolving it of any further responsibility.

Birth defects

Some 30,000 local residents, including five different Amazonian tribes, began the lawsuit against Texaco in 1993.

The plaintiffs say that the oil company knowingly dumped 18bn gallons (68bn litres) of toxic waste water and spilled 17m gallons of crude oil into the rainforest during its operations in north-east Ecuador.

They say the affected area covers 4,400 sq km (1,700 sq miles) on the border with Colombia.

Local residents believe the pollution has led to health problems such as cancer and birth defects.

In 2011, an Ecuadorean judge ordered Chevron to pay $18.2bn (£14.1bn) for “extensively polluting” the Lago Agrio region.

Ecuador’s highest court last year upheld the verdict against Chevron a year later, but reduced the amount of compensation to $9.5bn.

‘Unpunished forever’

Chevron argued that it only lost the case because the legal team representing the villagers paid nearly $300,000 (£232,000) in bribes in Ecuador.

In 2014, US district judge Lewis Kaplan in New York ruled that “corrupt means” were used by Ecuador’s legal team to win the 2011 case.

After the latest ruling in the Hague, a lawyer for the indigenous communities criticised the Ecuadorean government for accepting taking the case to an arbitration court.

“That is playing Chevron’s game and leaving the crime unpunished forever,” said Pablo Fajardo.

He said he was considering all legal avenues.



Glencore Lands PetroEcuador ‘Spot’ Deal

(Energy Analytics Institute, Ian Silverman, 14.Jul.2018) – Glencore Ltd won a recent EP PetroEcuador spot auction, which guarantees the Ecuadorian entity income of $279.3 million.

The Swiss company offered the best bid price with a positive differential of $ 1.08 per barrel, reported the daily newspaper El Universo.

EP Petroecuador invited 42 qualified companies to the public tender, and received eight offers from Enap, Eni Trading & Shiping, Glencore, Gunvor, Phillips 66, Repsol, Trafigura, and Unipec.

The sold crude oil will come in 11 shipments of 360,000 barrels each, and to be delivered during August-October of 2018.


UDLA Students Visit Soil Treatment Center

(Energy Analytics Institute, Ian Silverman, 10.Jul.2018) – Nearly 27 engineering students studying Environmental Engineering and Biotechnology Engineering at Ecuador’s Americas University (Universidad de las Américas or UDLA by its Spanish acronym) visited the El Salado Soil Treatment Center, located in the province of Napo.

The students visited the site with the objective to gain knowledge of remediation processes utilized in the area by PetroEcuador, announced the state oil company in an official statement on its website.

The visit today was a way to understand how in reality the soil is treated from an environment point of view, reported EP PetroEcuador, citing engineering student Solange Figueroa.


PetroAmazonas Production Costs Below $20/bbl

(Energy Analytics Institute, Aaron Simonsky, 15.Jun.2018) – Production costs at the state entity remain below the $20 per barrel mark.

PetroAmazonas EP’s production costs rose slightly to $17.01/bbl in May 2018, up sequentially from $16.46/bbl in April 2018. For the first five months of 2018, the company’s production costs have averaged $17.08/bbl, according to data posted to Twitter by EP PetroEcuador.


PetroEcuador Activities Normal After Earthquake

(Energy Analytics Institute, Aaron Simonsky, 15.Jun.2018) – Ecuador’s EP PetroEcuador announced all its activities continue under normal conditions after a magnitude 5 earthquake was reported this morning in Ecuador.

The epicenter was identified as Nobol (Guayas), the state entity reported in a Twitter posts.


Pampa Energía Announces Settlement Agreement in Ecuador

(Pampa Energía S.A., 19.Mar.2018) – Pampa Energía S.A. announced that regarding the conflict that EcuadorTLC (a subsidiary company established in the Republic of Ecuador and which Pampa holds a 100% ownership directly and indirectly) held with other members of the Bloque 18 Consortium (the ‘Plaintiff Parties’) against the Republic of Ecuador, and which award resolution went through the International Arbitration under the UNCITRAL’s rules (Case CPA No. 2014-32: 1. EcuadorTLC S.A. et al. c. 1. The Republic of Ecuador 2. EP Petroecuador) (the ‘Arbitration’). The participation of EcuadorTLC in the Bloque 18 Consortium is 30% and the Final Award duly issued by the Arbitration Court and corresponding to EcuadorTLC stake, amounts to $176 million (the ‘Final Award’).

With respect to the Arbitration, on March 19, 2018, the Republic of Ecuador and the Plaintiff Parties executed an agreement (the ‘Agreement’) by which the Plaintiff Parties will not pursue the collection of the Final Award, in exchange for a compensation for general damages, that in the case of EcuadorTLC consists of (i) release from fiscal and labor claims currently in trial stage, amounting for more than $100 million, and (ii) an additional compensation of $68 million before the end of first half 2018 (including the recovery of granted guarantees). Furthermore, we estimate that the Agreement will generate an approximate net reporting profit of US$40 million.

Moreover, the Republic of Ecuador has declared and acknowledged within the Agreement that (i) said agreement is completely valid and binding to the Republic of Ecuador, (ii) any payment default by the Republic of Ecuador under the Agreement will allow the Plaintiff Parties to fully execute the Final Award, and (iii) there is no pending obligation remaining by the Plaintiff Parties in relation to the Bloque 18 Consortium’s operation and exploitation.


PetroEcuador to Export No. 6 Fuel Oil in July

(Energy Analytics Institute, 27.Jun.2016, Clifford Fingers III) – Trafigura PTE LTD won a bid by EP PetroEcuador whereby the former will export 950,000 barrels of No. 6 Fuel Oil, announced EP PetroEcuador in an official statement on its website.

The winning bid had a $1.49 per barrel discount.

The shipments from Ecuador will be processed in 5 shipments of 190,000 barrels each. The first shipments could leave the country during July 11-13, 2016.

The state oil company had invited 33 companies — qualified to offer No. 6 Fuel Oil — to bid for the exportation of the product, announced the state oil company in an official statement on its website.

The companies — Arkham S.A, B.B Energy (Asia), PTE LTD, Citizens Resources LLC, Glencore LTD, Novum Energy Trading Corp, Trafigura PTE LTD and Vitol INC — presented their offers on June 23, 2016. PetroEcuador announced that 7 offers were received as well as 8 excuses. Due to a tie related to two offers, the said companies had another 24 hours to present their new offers.


PetroEcuador Helps Control Fuel Oil Spill

(Energy Analytics Institute, 24.Jun.2016, Clifford Fingers III) – EP PetroEcuador turned over formal activities related to the containment, cleaning and monitoring along the Daule river, kilometer 24 in the Merced sector of Guayaquil to the company Balsasud Balsera Sudamericana, reported the state oil company in an official statement on its website.

On June 21, 2016 PetroEcuador announced that it had lent a helping hand to water company Interagua and Citizens Security Committee to control a fuel spill in the Daule River.

The spill of Fuel Oil No. 4 occurred when the fuel was being transported by a private tanker owned by Balsasud Balsera Sudamericana.

PetroEcuador assisted by sending technical personnel from its Security, Health and Environment department along with others from other departments to assist with the cleanup process.


Ecuador Oil Output 556 Mb/d in May 2016

(Energy Analytics Institute, 21.Jun.2016, Clifford Fingers III) – Ecuador’s oil output reached 556,000 barrels per day in May of 2016, up sequentially from 555,000 barrels per day in April of 2016, reported the Organization of Petroleum Exporting Countries (OPEC) in its June 2016 Monthly Oil Market Report (MOMR), citing data from direct communications with the Andean nation.


Three Companies Interested in Esmeraldas Overhaul

(Energy Analytics Institute, 16.Jun.2016, Clifford Fingers III) – Three companies, Adelca, Novacero and Practipower, presented their bids to buy an estimated 6,500 tons of salvage left over from the Esmeraldas Refinery overhaul.

A total of 29 companies from Ecuador were qualified to present bids for salvage from the Esmeraldas Refinery such as electronic equipment, furnaces, bulbs, reactors and other pieces that were replaced during the recent overhaul of the refinery, reported EP PetroEcuador in an official statement on its website.

The bids will be analyzed and a winner will be announced within 48 hours, said Omar Quijano, an EP PetroEcuador executive with the law division within the state oil company.


Esmeraldas Overhaul to Reduce Imports by Nearly $355 Mln

(Energy Analytics Institute, 8.Jun.2016, Clifford Fingers III) – Ecuador will benefit financial from the recently completed overhaul of the Esmeraldas refinery.

The country will save more than an estimated $1 million per day due to the decrease in fuel and derivative imports which will translate into an annual savings of around $355 million, reported EP PetroEcuador in an official statement on its website, citing company General Manager Pedro Merizalde Pavón.

“The refinery is now operating at 100 percent of its capacity,” said EP PetroEcuador Refining Manager Diego Tapia.

Overhaul Summary

The overhaul of the refinery required an investment of $1.2 billion and allowed EP PetroEcuador to recuperate the mechanical integrity of the plant and return to its 110,000 barrel-per-day operating capacity.

An estimated 7,000 workers participated in overhaul activities, of which 6,400 were local hires.

The overhaul will translate into an annual savings of nearly $355 million due to the reduction of fuel and petroleum derivative imports.

As part of the overhaul, close to 5,300 tons of toxic waste was also shipped outside of Ecuador for proper treatment. Additionally, $137 million was invested in social projects especially in the area of education, health, sanitation, as well as road related activities.


PetroEcuador Gasoline Network of 276 Service Stations

EEnergy Analytics Institute, 1.Jun.2016, Clifford Fingers III) – EP PetroEcuador has a gasoline network comprising 276 service stations, reported the state company in an official statement.

PetroEcuador affiliates operated 215 of the service stations while PetroEcuador operated 7 alone. The state oil company also has 12 artisan fishery stations as well as 42 service stations located along the Ecuadorian borders.

Table: PetroEcuador Gasoline Stations in Ecuador

Service Stations ————— Units

EP PetroEcuador affiliate —- 215

EP PetroEcuador ————– 7

Border service stations ——- 42

Artisan fisheries ————— 12

Total Network —————– 276


LPG deposits ——————- 5

Source: EP PetroEcuador


San Mateo Petrol Station Starts Operations

(Energy Analytics Institute, 25.May.2016, Clifford Fingers III) – The artisan fishing and ship vessel diesel station in San Mateo, located in the province of Manabí, started operations on May 19, 2016 and will benefit an estimated 1,106 artisanal fishers in the area, reported EP PetroEcuador in an official statement on its website.

The station has capacity to store 12,000 gallons of artisan fishing fuels and 12,000 gallons of ship vessel diesel.


Ecuador to Investigate Officials for Possible Fraud

(Energy Analytics Institute, 11.May.2016, Clifford Fingers III) – A number of public officials are under investigation for irregularities related to declaration of goods and links with companies created in tax havens.

The officials being investigated include: PetroEcuador’s former General Manager Álex Bravo Panchano, current PetroEcuador General Manager Pedro Merizalde and Ecuador’s former Hydrocarbons Minister Carlos Pareja Yannuzelli, reported the daily El Universo, citing comments from Ecuador’s Treasurer Carlos Pólit in Ecuavisa.

“We have detected the omission of certain information in the asset declarations of former PetroEcuador officials, and possibly some officials currently with the company,” said Pólit. As a result, we will review the public administrative information from the past seven years, he said.


La Libertad Refinery Fire Controlled With No Injuries

(Energy Analytics Institute, 11.May.2016, Clifford Fingers III) – A fire at the Parson plant of the La Libertad refinery, located in the Santa Elena province, was controlled within five minutes.

The fire was caused by a leak at a cargo pump which caught fire when it contacted a hot surface, reported EP PetroEcuador in an official statement on its website.

Operations at the Universal plant were suspended as part of preventative measures, according to the state oil company.


Ecuador Starts Exploitation Activities at Tiputini

(Energy Analytics Institute, 9.May.2016, Clifford Fingers III) – Ecuador starting exploitation activities at the Tiputin field, part of the Yasuní ITT block in July 2016, reported the news agency AFP, citing a statement from the country’s Hydrocarbon Ministry.

The Tiputini 04 well in Block 43 has estimated potential to produce up to 5,000 barrels per day, said Hydrocarbon Minister José Icaza Romero during a visit to the block.

A total of 40 wells are planned to recuperate an estimated 166 million barrels of reserves with an estimated investment of $2.6 million per well.

“Initial production is expected in July 2016,” said Romero. “It is estimated that by December 2016 average production will reach 20,000 barrels per day.”

The Tiputini field — which is located outside of the Yasuní — forms part of the ITT Block with estimated 920 million barrels of crude, and represents 20 percent of Ecuador’s total oil reserves.


PetroEcuador Highlights Benefits of Esmeraldas Workover

(Energy Analytics Institute, 19.Apr.2016, Clifford Fingers III) – EP PetroEcuador stands to gain the most from the recent workover to the Esmeraldas Refinery, reported the state company in an official statement.

The primary benefit includes recuperating the 110,000 barrel-per-day capacity as well as increasing processing capacity, efficiency, and continuity while reducing the refining costs associated with the importation of refined products.

Other benefits to the workover include:

— Increasing the capacity of the FCC unit to 20,000 barrels per day from 18,000 barrels per day, thus boosting production of LPG and gasolines;

— Producing diesel with a lower sulfur content, resulting in a positive environmental impact and benefits to the health of citizens nearby;

— Save $305 million due to the reduction in derivative imports;

— Increase in the production of LPG by 250 tons/day, and gasoline by 5,600 barrels per day.


PetroEcuador Refineries Have 175 Mb/d Capacity

(Energy Analytics Institute, 5.Apr.2016, Clifford Fingers III) – EP PetroEcuador’s three refineries — Esmeraldas, La Libertad and Shushufindi — had a combined processing capacity of 175,000 barrels per day at year end 2015, reported the state company in an official statement.

The largest refinery is Esmeraldas, with a 110,000 barrel-per-day processing capacity. Followed thereafter by La Libertad (45,000 barrels per day) and finally Shushufindi (20,000 barrels per day).

Table: EP PetroEcuador Refineries in Ecuador (b/d/)

Refinery ———– Processing Capacity

Esmeraldas ——– 110,000

La Libertad ——– 45,000

Shushufindi ——- 20,000

Total Capacity —- 175,000

Source: EP PetroEcuador


PascualesCuena Product Pipeline Online in May 2016

(Energy Analytics Institute, 5.Apr.2016, Clifford Fingers III) – Construction of the Pascuales-Cuenca product pipeline will allow EP PetroEcuador to develop a LPG transport and distribution system to supply the southern region of the country, reported the state company in an official statement.

Construction of the pipeline will also allow the company to reduce risk related to constant use of roadways and CO2 emissions due to the reduced use of transport trucks.

Additionally, construction of the pipeline will allow PetroEcuador to eliminate product transport via transport trucks in the southern region of the country; thus, further reducing depreciation of the country’s roadways as well as vehicle congestion in the region.

The total budget for the project is $578.2 million, of which $541.9 million was invested in 2015. As of year-end 2015 the project had reached a completion status of 97.2 percent. It was estimated that the pipeline was to be online and completely operational by May 31, 2016.

The first part of the pipeline will include a 10-inch pipeline spanning 103 kilometers and will connect the Pascuales station with the La Troncal terminal and be able to transport 46,500 barrels per day.

The second part of the pipeline will include an 8-inch pipeline spanning 112 kilometers and will connect the La Troncal terminal with the Cuenca terminal and be able to transport 30,800 barrels per day.


Petroecuador Says Time to Buy Light Crude

(Reuters, 6.Oct.2015, Alexandra Valencia) – Ecuador’s state-run oil company Petroecuador said it is ready to advance discussions with 24 companies interested in supplying light crude to the Andean country.

The smallest OPEC member has said it wants to import crude for the first time in decades as light reserves are running out. The country primarily produces heavy crudes.

Ecuador is looking for foreign suppliers of around 30 million barrels of light crude to feed its renovated 110,000 barrel-per-day Esmeraldas refinery.

“If we reach an understanding convenient for Petroecuador, we are going to do it,” Petroecuador’s General Manager Carlos Pareja told reporters.

He confirmed meetings next week with companies that could submit offers of light crude, among which he highlighted Chile’s ENAP.

A document seen by Reuters separately said that Petroecuador is interested in acquiring crude of 28 API degrees of density and up to 0.7 percent sulfur.

The purchases would cover 12 months of deliveries, representing a volume of some 82,000 barrels per day (bpd) and becoming Latin America’s second-largest tender to buy crude, after Venezuela’s proposal to import 75,000-150,000 bpd.

Petroecuador’s intent is controversial in a country that has always been an exporter and is already suffering from low oil prices, reducing its dollar revenue.

However, Pareja defended his proposal noting that other countries such as Colombia are also looking for foreign suppliers of light crude.