Petroecuador announces force majeure on oil exports

Ecuador's state oil company Petroecuador on Friday announced force majeure for its crude oil exports after indigenous protests blocked oil production in the country's Amazon region.

The force majeure state means that due to reasons beyond its control, Petroecuador will not be able to guarantee the provision of oil to its international clients as is stipulated by the contracts.

Petroecuador said it had to reduce its oil exports by at least 36,000 barrels per day (bpd) due to weeks of protests in the eastern Orellana province, some 200 km east of the capital, where Brazilian oil company Petrobras is operating an oilfield.

Under a participation agreement signed by Petroecuador and Petrobras, the Brazilian company operates Ecuador's Block 18 oilfield and gives the Ecuadorian government about half of its output.

Petrobras, which had produced 35,000 bpd from Block 18, halted its production on March 9 as local residents blocked production activities at the site and demanded more investment from the company in social and infrastructure projects.

Source: Xinhua