Ecuador considers refinery closures, touts oil discoveries


QUITO�Ecuador says it is planning to shut in one or more of its refineries and begin importing refined products. Meanwhile, the government is trumpeting recent exploration successes in its Amazon region by Perez Companc SA and Cayman Oil Co.

Ecuador has announced plans to import oil products such as gasoline, diesel, LPG, and fuel oil. As a result, one or more of its domestic refineries�at La Libertad, Shushufindi, and Esmeralda�are expected to close.

Studies have shown that it is cheaper for Ecuador to import these products than produce them domestically. PetroEcuador is considering alternatives, however, such as refining abroad, exchanging crude for clean products, exporting the country's crude production, and buying the products it needs in the international market.

Meanwhile, Ecuador has echoed Perez Companc's estimated that a recent oil discovery on Block 31 holds 500 million bbl of reserves. Ecuador Minister of Energy and Mines Pablo Teran says this and other discoveries significantly boosts the nation's crude reserves.

The Argentina-based firm made the find under a participation contract granted during the country's eighth licensing round (OGJ Online, May 18, 2000). On test, the discovery well flowed 5,000 b/d. Three zones remain to be tested, and Perez Companc will drill more wells on Block 31 over the next year.

Ecuador also says 55 million bbl of reserves of 28� and 33� gravity crude have been discovered with the Palo Azul well, also in the Amazon region. Initial production from the well, drilled in the southern portion of Block 18, is excpected to be 3,600 b/d of crude, 3,000 b/d of which will go to Ecuador's state oil company, Petroproduccion. The remaining 600 b/d will go to Cayman Oil Co., which made the discovery.

Related Articles

Repsol to acquire Talisman in $13 billion deal

12/16/2014 Spain’s Repsol SA has agreed to acquire all shares of Talisman Energy Inc. of Calgary for $8.3 billion along with assumed debt of $4.7 billion. The...

Eni reports flow test rates for well offshore Congo (Brazzaville)

12/15/2014 A production test conducted by Eni SPA on the Minsala Marine 1 NFW well offshore Congo (Brazzaville) flowed 5,000 b/d of 41° gravity oil and 14 MMs...

Cook to head DONG Energy E&P group

12/15/2014 David B. Cook has been named group executive vice-president and chief executive officer for exploration and production at DONG Energy, Fredericia, ...

Security takes center stage

12/15/2014

Thwarting terrorists, repelling pirates, and routing organized crime: sounds like themes of familiar, big-budget Hollywood movies.

Frac ban exemption made in Broomfield

12/12/2014 A Colorado District Court judge has ruled that a hydraulic fracturing ban in Broomfield, Colo., does not apply to an operator that entered into an ...

Uncertainty lingers about local content rules as Mexico prepares for competitive bid round

12/12/2014 The energy industry around the world has it eyes on Mexico as the country implements constitutional and legislative reforms that are set to open it...

COGA calls frac fluid study "sound science"

12/12/2014 Chemicals used in fracturing fluid appear to be no more toxic than chemicals commonly found in homes, said an analysis by University of Colorado Bo...

Study links methane contamination in water wells to poor well construction-not fracing-in Marcellus

12/12/2014 A new study found that fugitive gas contamination at eight clusters of water wells in the Marcellus and Barnett shale regions might be linked to we...

WoodMac: US unconventional enters new stage

12/12/2014 The unconventional oil and gas revolution is entering into a new stage with drilling and completion techniques pioneered in unconventional plays no...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected