Petroecuador closes some wells as heavy rains affect oil transport

UPDATE 1 – Petroecuador closes some oil wells as heavy rains affect oil transportation

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QUITO, June 19 (Reuters) –Ecuador’s state-owned oil company will suspend operations at some wells as heavy rains have disrupted oil transportation, it said on Wednesday, leading to a disruption in the transport of heavy Napo crude.

Petroecuador’s production at two blocks in Ecuador’s Orellana province has fallen by 37,000 barrels per day since June 17, when heavy oil production was halted, the company said in a statement. It expects crude deliveries due this month to be postponed.

“Crude oil storage tanks located in various locations have been filled and later the wells producing (heavy) Napo crude that cannot be transported will be closed,” Petroecuador said in a statement.

Ecuador’s private oil pipeline OCPon Monday the operation ceased and declared force majeure in view of heavy rainfall in the Andean state.

The private pipeline operator said it made the decision to close valves and stop pumping heavy oil through the pipeline as a preventative measure because bad weather had accelerated erosion around the infrastructure.

The state-owned SOTE pipeline is operating normally.

Reporting by Alexandra Valencia;
Written by Kylie Madry and Oliver Griffin