Ecuador to tender private oil pipeline

Ecuador’s government will disclose the management model and bidding process for the OCP crude pipeline in the coming weeks.

The energy and mines ministry provided the information after announcing that OCP Ecuador’s operation contract for the oil duct will not be extended.

“The decision is made after a review process of the applications submitted by OCP Ecuador S.A. in search of an extension, of which it was determined that the contract and the hydrocarbons law do not allow an extension, but rather the transfer to the State at the end of the term,” the ministry said.

The transfer will take place November 30, and the process will respect labor rights and contracts with third parties, the ministry added.

“In strict compliance with the legislation, in particular, the authorization contract and in respect of the decisions of the Ecuadoran State, we ratify our commitment to continue the process to ensure the transfer of the shares in the most orderly manner,” OCP said in a statement.

The private operator highlighted that during the pipeline’s operation, over 1.2Bb of crude were transported, representing more than US$72bn in revenue for the State, over US$470mn was paid in taxes and other contributions, and more than US$56mn was spent on community projects.

In August, Pampa Energía became the sole owner of OCP after acquiring a 36% share from Repsol for US$23mn.

OCP and Pampa Energía did not immediately respond to a request for additional comment regarding future operations in Ecuador, such as the possibility of participating in the planned tender.

The 485km, 450,000b/d pipeline runs from the Amazon to the maritime terminal at the port of Balao and was developed as a private initiative in 2001, with an initial investment of over US$1.4bn under a 20-year concession.

Of the 474,190b/d transported by pipeline in Ecuador in the first nine months of 2024, OCP moved 188,401b/d and SOTE, operated by national oil company Petroecuador, dispatched 285,789b/d, numbers from the NOC show.

OCP also transports 10,000b/d of Colombian oil.

More recently, OCP and Peru upstream operator PetroTal partnered for a pilot project to ship crude from Amazon block 95 to the pipeline.

OCP pipeline route (Source: OCP)