Protests force Petroecuador to curtail production

Ecuador’s state hydrocarbons company Petroecuador closed nearly 240 wells and paralyzed 28 drilling rigs in the wake of national protests organized by indigenous confederation Conaie.

Petroecuador CEO Ítalo Cedeño told a press conference on Monday that the company lost 64,350b of production due to the protests, which began on June 13.

If private production is added, losses amount to 78,000b. In production value, the sector has lost US$7.6mn so far.

Operations have been affected by roadblocks, obstructing access to oil platforms, and well seizures. Roadblocks have also prevented the arrival of equipment key to sustain operations or maintenance of some fields.

On June 18, Petroecuador declared force majeure for the exploration, exploitation, transportation, industrialization and trade of oil to avoid sanctions from buyers and suppliers.

Cedeño said if the protests continue, state hydrocarbons production will fall from 400,000b/d to 128,000b/d by June 30.