Ecuador’s Petroecuador Declares Force Majeure Following SOTE Pipeline Spill
Petroecuador has declared force majeure on the SOTE pipeline due to an oil spill caused by a landslide. This incident may disrupt crude oil exports to Shell, which had scheduled significant purchases this month. The spill has led to environmental emergencies in the local area, including pollution of the Esmeraldas River.
Ecuador’s state oil company, Petroecuador, has declared force majeure on the Trans-Ecuadorian Pipeline System (SOTE) due to a significant oil spill caused by a landslide that ruptured the pipeline. This declaration, made on Tuesday, indicates that Petroecuador may be unable to meet its contractual obligations for crude oil exports, as the company focuses on spill containment efforts.
Internal documents reviewed by Bloomberg suggest that this disruption may affect exports to Shell Plc, which had planned to purchase at least 1.8 million barrels of heavy sour Oriente crude this month. Shell is based in London and did not provide a comment when approached.
The SOTE is Ecuador’s primary oil pipeline system, capable of moving 360,000 barrels each day over a distance of 500 kilometers from the Amazon to the Pacific coast. Following the spill, Petroecuador announced its concerted efforts to manage the situation, although it has not disclosed any estimates regarding the volume of oil that has spilled.
The affected area encompasses a section of the Esmeraldas River in Esmeraldas province, where local residents reported significant water pollution. Efforts by these residents to construct dikes to mitigate the oil’s spread reportedly proved insufficient.
In response to the ongoing crisis, the Emergency Operations Committee in Esmeraldas declared an environmental emergency due to the deterioration in water quality. The mayor of Esmeraldas, Vilko Villacis, characterized the environmental damage as “unprecedented,” and his office has halted the diversion of river water to the city’s aqueduct, urging citizens to conserve water.
The recent declaration of force majeure by Petroecuador signals serious challenges for Ecuador’s oil exports following a devastating oil spill caused by a landslide. The environmental impact, particularly on the Esmeraldas River, is significant, leading local authorities to impose emergency measures. The full extent of the spill and its impact on agreements with companies like Shell remains unclear, complicating the situation further.
Original Source: www.pipeline-journal.net
