Executive Decree No. 1221 will allow the optimal operation of the new Petroecuador EP

This Petroecuador release was published using machine translation.

Quito, Ecuador. - This Thursday, January 7, the President of the Republic, Lenín Moreno, signed Executive Decree No. 1221, which grants legal personality, own assets, budgetary, financial, economic, administrative and management autonomy for optimal functioning of the Public Company Petroecuador; renewed and unified after concluding the structuring of the new company, on December 31, 2020. The merger will allow to have a single strong, consolidated company, with efficient and transparent processes.

This document complements Executive Decree No. 723 signed on April 24, 2019, in which the President decided to “start the merger process between the Public Company of Hydrocarbons of Ecuador EP Petroecuador and the Public Company of Exploration and Exploitation of Hydrocarbons “Petroamazonas EP”, in a single public company (…) the creation of a Temporary Merger Unit… that will manage the merger project of both companies (…) ”.

With this provision, the new unified Petroecuador EP, which came into operation on January 1, 2021, has as its main objective “the management of the strategic sector of non-renewable natural resources, for their sustainable use, in accordance with the Organic Law of Public Companies and the Hydrocarbons Law, for which it will intervene in all phases of the hydrocarbon activity "such as: exploration, exploitation, transportation, refining, internal commercialization and exportation.

As of the validity of Decree 1221, the new organic structure of the company will govern, which includes the Exploration and Production phase, an area that was in charge of the former Petroamazonas EP until December 2020. Thus, there are a total of five related managements to the value chain. In addition, through this Decree, the company legally assumes all the commitments of the two merged state companies: rights, obligations, equity, assets and liabilities, competences, personnel payroll, contracts, environmental permits, among others.

The Minister of Energy and Non-Renewable Natural Resources, René Ortiz, reported that EP Petroecuador will be the largest public company in the country since it has extensive oil infrastructure in the 24 provinces that includes: 23 oil blocks, three refineries, pipelines, one network of Liquefied Petroleum Gas pipelines and pipelines, maritime terminals, own and affiliated service stations, clean product terminals, among other assets. Areas in which 10,326 employees currently on the payroll perform their duties, of which 80% correspond to operational personnel linked to the work of the oil company's business line.

"The mission of the unified company is focused on manufacturing oil to maximize the value chain of exploration, production, transportation, refining and commercialization, added to a vision with technological innovation that will be projected to the world of oil consumption efficiency and its derivatives, with criteria of transparency and social commitment. Today's world is in a changing process, at the forefront of technological advances and the oil industry in all its phases must adapt to them, that is what we are looking for with the integrated company ”, said the Minister.

The public company will maintain an efficient and transparent work policy, and will have as a priority to improve the production of crude oil and diversify markets for Ecuadorian hydrocarbons, with which it will have a more competitive company worldwide and that contributes to the development of the country.

Operations EP Petroecuador

Review Executive Decree No. 1221 by clicking here