Ecuador faces crude output decline due to attacks, corrosion

Setbacks from attacks and corrosion at oilfields in Ecuador’s eastern Amazon jungle are curbing crude output, Petroecuador said in a statement Sept. 2.

Armed assailants forced workers to shut down the power supply to the Oso-Yuralpa fields at the Coca Payamino concession in the Oriente Basin, the state oil company said. The shutdown has reduced production by 1,080 b/d in production and the repairs could take up to 30 days, the company said, adding that the armed forces will increase security at the installations.

At the same time, corrosion of power lines at the Auca concession has cut production by an additional 6,633 b/d, according to Petroecuador, adding it expects to complete repairs by Sept. 5.

Lack of maintenance and attacks on oilfields have led to a decline in production at Petroecuador’s aging installations in recent years. This event comes just days after the company began closing down wells at its ITT-Block 43 oilfields at the end of August, following an August 2023 plebiscite in which Ecuadorians voted to shut down ITT due to environmental concerns.

Ecuador was producing 467,907 b/d of crude oil as of Sept. 2, according to the ministry. Petroecuador accounts for about 80% of the country’s output.