21.06.2022, 15:27
Ecuador May Suspend Oil Exports Due to Protests in the Country
Source: OREANDA-NEWS
OREANDA-NEWS The national oil company of Ecuador Petroecuador warned of the possibility of a forced suspension of oil exports if indigenous protests continue to hamper production, state oil company chief executive Italo Cedeno said.
"If at some point our tanks in Lago Agrio, Balao, Amazonas and Punta Gorda contain no more oil than just for domestic consumption, it is obvious that we will have to suspend exports", he said at a press conference.
The company has told about its force majeure in advance to protect itself in case it fails to fulfill the contracts, reports Bloomberg. So far, Petroecuador has not suspended exports, Cedeno said, as the domestic market remains fuel-supplied. Current stocks will last at least for four to five days.
According to the head of the company, if the protests do not subside, oil production by the end of the month may fall by more than half - to 130 thousand barrels per day. To date, production has decreased by about 29 thousand b/d. The protesters are targeting the main Petroecuador fields, which account for about 80% of oil production.
A week ago, the indigenous organization CONAIE launched protests against the high cost of living and the conservative government's economic policies, demanding lower fuel prices. The government said it was ready to negotiate but refused to increase fuel subsidies.
"If at some point our tanks in Lago Agrio, Balao, Amazonas and Punta Gorda contain no more oil than just for domestic consumption, it is obvious that we will have to suspend exports", he said at a press conference.
The company has told about its force majeure in advance to protect itself in case it fails to fulfill the contracts, reports Bloomberg. So far, Petroecuador has not suspended exports, Cedeno said, as the domestic market remains fuel-supplied. Current stocks will last at least for four to five days.
According to the head of the company, if the protests do not subside, oil production by the end of the month may fall by more than half - to 130 thousand barrels per day. To date, production has decreased by about 29 thousand b/d. The protesters are targeting the main Petroecuador fields, which account for about 80% of oil production.
A week ago, the indigenous organization CONAIE launched protests against the high cost of living and the conservative government's economic policies, demanding lower fuel prices. The government said it was ready to negotiate but refused to increase fuel subsidies.
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