Oleoducto de Crudos Pesados (OCP) Ecuador SA has been granted an extension to transfer to state control the 488-km OCP onshore oil pipeline by Ecuador's ministry of oil and mines to July 31, 2024.
Petroecuador was initially expected to assume control of the $1.474-billion, 450,000 b/d pipeline by Jan. 20 upon expiration of a contract to operate the pipeline.
"The transfer has encountered some technical hurdles, as well as the inability to close the transition tables, thus requiring the continuation of negotiations between both parties. It is worth noting that OCP actively collaborates in the transition tables, where the evaluation and resolution of various contingencies related to the current transport capacity of the pipeline are being carried out. Both parties recognize the importance of addressing these challenges comprehensively,” OCP said.
Currently, the OCP is underutilized, and the planned cessation of production in Block 43-ITT in the Yasuní National Park, as approved in a referendum in August 2023, would exacerbate the problem.
During the first 2 months of 2024, the OCP transported just over 206,000 b/d, while the 360,000 b/d Sistema de Oleoducto Transecuatoriano (SOTE) moved 271,000 b/d, according to monitoring by consulting firm Welligence Energy Analytics.
Andrés Armijos, head of Latin America at the consulting firm, said the OCP has historically transported below 30% of its utilization. If closure of the natural reserve goes ahead, the OCP would transport less than 100,000 b/d. The ITT is currently producing 50-60 b/d, about 15% of Ecuador's production, Armijos said.
The infrastructure to be transferred to the Ecuadorian state consists of four pumping stations: Amazonas, 5 km from Nueva Loja; Cayagama, in Gonzalo Pizarro, in the province of Sucumbíos; Sardinas, in the Quijos valley, Napo; and Páramo, in Papallacta, Napo. The OCP also has its own maritime terminal in Esmeraldas, with a storage capacity of 3.75 million bbl.