The Ecuadorian government takes over management of the OCP pipeline for six months

Ecuador has transferred management of the OCP pipeline to the state for an interim period of six months following the expiration of the contract with OCP Ecuador. A new tender will soon be launched to determine its future operation.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

The management of the Oleoducto de Crudos Pesados (OCP), a key infrastructure for Ecuador’s oil economy, officially came under state control on November 30, 2024. This transition followed the decision not to renew the contract with the former private operator, OCP Ecuador, a consortium of international investors that had managed the pipeline since 2003.

The Ecuadorian Ministry of Energy and Mines stated that contract extension requests made by OCP Ecuador could not be accepted due to limitations imposed by the hydrocarbons law and the terms of the agreement. This temporary takeover aims to maintain oil operations while preparing for a new international tender process.

A strategic yet underutilized pipeline

Designed to transport up to 450,000 barrels of heavy crude oil per day, the OCP is an essential infrastructure for Ecuador’s crude oil exports. However, in recent years, it has operated below its maximum capacity, transporting around 200,000 barrels per day. This underutilization reflects both market constraints and operational challenges.

In parallel, the OCP coexists with the Sistema de Oleoducto Trans-Ecuatoriano (SOTE), another pipeline directly managed by the state, which remains a central pillar of the country’s oil infrastructure.

An economic and strategic issue

The oil sector accounts for approximately one-third of Ecuador’s state revenue. The OCP plays a crucial role in transporting heavy crude extracted from oil blocks in the Amazon region, operated mainly by Petroamazonas and private companies.

By temporarily taking over the pipeline’s management, the Ecuadorian government aims to preserve export continuity, which is vital for economic stability. In the long term, the upcoming international tender seeks to attract operators capable of optimizing the pipeline’s management while maximizing state revenues.

Opportunities for investors

The upcoming tender process represents a strategic opportunity for energy players, both local and international. Interested companies will need to demonstrate strong technical and financial capabilities to meet government requirements.

This initiative comes amid increased competition from neighboring countries like Colombia and Peru, which are investing in developing their oil infrastructure. By strengthening control over critical infrastructure while opening the door to new investments, Ecuador seeks to maintain its competitiveness and ensure better redistribution of oil revenues.

Coal India issues tenders to develop 5 GW of renewable capacity, split between solar and wind, as part of its long-term energy strategy.
US utilities anticipate a rapid increase in high-intensity loads, targeting 147 GW of new capacity by 2035, with a strategic shift toward deregulated markets.
France opens a national consultation on RTE’s plan to invest €100 billion by 2040 to modernise the high-voltage electricity transmission grid.
Governor Gavin Newsom orders state agencies to fast-track clean energy projects to capture Inflation Reduction Act credits before deadlines expire.
Germany’s energy transition could cost up to €5.4tn ($6.3tn) by 2049, according to the main industry organisation, raising concerns over national competitiveness.
Facing blackouts imposed by the authorities, small businesses in Iran record mounting losses amid drought, fuel shortages and pressure on the national power grid.
Russian group T Plus plans to stabilise its electricity output at 57.6 TWh in 2025, despite a decline recorded in the first half of the year, according to Chief Executive Officer Pavel Snikkars.
In France, the Commission de régulation de l’énergie issues a clarification on ten statements shared over the summer, correcting several figures regarding tariffs, production and investments in the electricity sector.
A group of 85 researchers challenges the scientific validity of the climate report released by the US Department of Energy, citing partial methods and the absence of independent peer review.
Five energy infrastructure projects have been added to the list of cross-border renewable projects, making them eligible for financial support under the CEF Energy programme.
The Tanzanian government launches a national consultation to accelerate the rollout of compressed natural gas, mobilising public and private financing to secure energy supply and lower fuel costs.
The Kuwaiti government has invited three international consortia to submit bids for the first phase of the Al Khairan project, combining power generation and desalination.
Nigeria’s state-owned oil company abandons plans to sell the Port Harcourt refinery and confirms a maintenance programme despite high operating costs.
The publication of the Multiannual Energy Programme decree, awaited for two years, is compromised by internal political tensions, jeopardising strategic investments in nuclear and renewables.
The US Energy Information Administration reschedules or cancels several publications, affecting the availability of critical data for oil, gas and renewables markets.
Brazilian authorities have launched a large-scale operation targeting a money laundering system linked to the fuel sector, involving investment funds, fintechs, and more than 1,000 service stations across the country.
A national study by the Davies Group reveals widespread American support for the simultaneous development of both renewable and fossil energy sources, with strong approval for natural gas and solar energy.
The South Korean government compels ten petrochemical groups to cut up to 3.7 million tons of naphtha cracking per year, tying financial and tax support to swift and documented restructuring measures.
The U.S. Department of Energy has extended until November the emergency measures aimed at ensuring the stability of Puerto Rico’s power grid against overload risks and recurring outages.
Under threat of increased U.S. tariffs, New Delhi is accelerating its energy independence strategy to reduce reliance on imports, particularly Russian oil.

Log in to read this article

You'll also have access to a selection of our best content.