Ecuador’s Petroecuador declared force majeure on its SOTE pipeline following an oil spill caused by a landslide. This event may affect crude oil exports, particularly impacting Shell Plc’s purchases. The spill has contaminated the Esmeraldas River, prompting environmental emergency measures in Esmeraldas province. Mayor Vilko Villacis noted the incident’s unprecedented damage and urged water conservation among residents.
Petroecuador, Ecuador’s state oil company, has declared force majeure on its Trans-Ecuadorian Pipeline System (SOTE) due to a landslide that resulted in a significant oil spill. This declaration, made on Tuesday, implies that the company may be unable to meet its crude oil export commitments as they focus on containing the spill’s impact.
The disruption in operations is particularly concerning for Shell Plc, which had secured at least 1.8 million barrels of heavy sour Oriente crude scheduled for loading this month. The SOTE pipeline, vital to the country’s oil transportation, has a capacity of 360,000 barrels per day and runs 500 kilometers from the Amazon to the Pacific coast.
Petroecuador has stated they are actively dealing with the emergency caused by the spill, though no specific volume of the spilled oil has been disclosed. The incident has led to notable contamination of the Esmeraldas River, affecting nearby residents who have attempted to mitigate the damage by constructing dikes, albeit with limited success.
The local Emergency Operations Committee has declared an environmental emergency over concerns regarding water quality in Esmeraldas province. Vilko Villacis, the mayor of Esmeraldas, characterized the oil spill damage as “unprecedented,” leading to the cessation of river water diversion to the city’s aqueduct and urging citizens to conserve water resources.
In conclusion, the declaration of force majeure by Petroecuador underscores the severe implications of the recent landslide and oil spill on Ecuador’s oil production and export capabilities. The environmental emergency declared in Esmeraldas highlights the urgent need for effective response measures to protect local water quality and the health of residents. As efforts continue to contain the spill, the economic impact, particularly on related exports, remains a significant concern.
Original Source: www.pipeline-journal.net
