After reinforcing the infrastructure of one of its pipelines, Ecuador is preparing to gradually restart the crude oil wells closed last week. Petroecuador, the state-owned oil company, announced that the strengthened pipeline was able to transport “13,750 barrels per hour”. This announcement comes after the temporary suspension of part of its crude exports last week following the collapse of a bridge in the Amazonian province of Napo.
Safety work in progress
The state-owned company is also working on securing the second pipeline, which is more than 40% complete. It plans to resume operations and pumping of crude from Friday, March 3. Another pipeline, this one private, had also suspended its pumping operations last week after the bridge collapse.
The importance of crude oil for Ecuador
Petroecuador extracts 78% of the country’s total oil production, which in 2022 amounted to 481,000 barrels per day. Last year, the country sold 67% of its total production, generating revenues of $10 billion, or about 10% of its GDP. Crude oil is Ecuador’s main export, so the gradual recovery of production is good news for the country’s economy.
In conclusion, the gradual resumption of crude oil production in Ecuador is a relief for the country’s economy. Petroecuador is actively working to secure its pipelines to avoid further production suspensions. With crude oil remaining Ecuador’s main export, the resumption of production is an important step in the recovery of its economy.
