Petroecuador has declared force majeure on the SOTE pipeline after a landslide caused an oil spill, jeopardizing crude oil exports. The incident affected water quality in Esmeraldas River, prompting environmental emergency declarations. The mayor described the damage as unprecedented, raising concerns for both local residents and the oil market.
Ecuador’s state-owned oil company, Petroecuador, has declared force majeure on the Trans-Ecuadorian Pipeline System (SOTE) following a significant oil spill caused by a landslide. This declaration, made on Tuesday, indicates that Petroecuador may be unable to meet its contractual obligations for crude oil exports while it manages the situation and works to contain the spill.
Internal documents reviewed by Bloomberg suggest that this disruption could impact exports to Shell Plc, which had planned to purchase at least 1.8 million barrels of Oriente crude scheduled for loading this month. However, Shell has not yet responded to requests for comments regarding the situation.
The SOTE serves as Ecuador’s primary pipeline system, boasting a capacity of 360,000 barrels per day, and transports oil over a distance of 500 kilometers (310 miles) from the Amazon region to the Pacific coast. Following the spill, Petroecuador reported that they are addressing the emergency, though they have not provided a specific estimate of the oil volume released into the environment.
The spill, attributed to the landslide, has severely contaminated a section of the Esmeraldas River in the Esmeraldas province, prompting residents in the town of Cube to report significant water pollution. Local efforts to build dikes for containment have yielded limited results, exacerbating the situation.
In response, the Emergency Operations Committee in Esmeraldas officially declared an environmental emergency, raising widespread concerns about water quality. Vilko Villacis, the mayor of Esmeraldas, characterized the damage as “unprecedented” and announced the temporary cessation of river water diversion to the city’s aqueduct while urging residents to conserve water.
In summary, the declaration of force majeure by Petroecuador highlights the severe impact of a landslide that ruptured the SOTE pipeline, leading to significant oil contamination in the Esmeraldas River. The environmental emergency has prompted local authorities to take precautionary measures regarding water usage while the company addresses the spill. This incident underscores the vulnerability of Ecuador’s oil infrastructure and its implications for both environmental and economic stability.
Original Source: www.pipeline-journal.net
