Ecuador hopes to begin recovering oil wells shut during protests from Thursday -minister
Ecuador hopes to begin recovering oil wells shut during protests from Thursday -minister Ecuador expects to begin recovering oil wells closed during more than two weeks of protests from Thursday, Energy Minister Xavier Vera told Reuters, after President Guillermo Lasso declared a security zone around energy infrastructure in two provinces. Crude production fell to 234,310 barrels per day (bpd) as of Wednesday, following the closure of more than 1,200 wells operated by state-owned oil company Petroecuador and the private sector, due to lower fuel supplies and road blocks. Control of oil wells will need to be reestablished before restarting production. On Sunday, the energy ministry warned production could stop completely in a matter of days due to vandalism.
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QUITO, June 30 (Reuters) - Ecuador expects to begin recovering oil wells closed during more than two weeks of protests from Thursday, Energy Minister Xavier Vera told Reuters, after President Guillermo Lasso declared a security zone around energy infrastructure in two provinces.
Protests led by indigenous groups erupted in Ecuador on June 13 to demand lower fuel prices as well as limits to further expansion of the mining and oil industries, resulting in at least eight deaths and cuts in Ecuador's oil production, its main source of income.
Crude production fell to 234,310 barrels per day (bpd) as of Wednesday, following the closure of more than 1,200 wells operated by state-owned oil company Petroecuador and the private sector, due to lower fuel supplies and road blocks.
Control of oil wells will need to be reestablished before restarting production.
Before the crisis Ecuador produced an average of 500,000 bpd of crude, Vera said, and the lost production has cost the country some $213 million according to figures from the ministry.
"We hope that in the course of today we can enter (the fields) with military and security forces, as well as with fuel, to recover the wells and be able to generate the necessary production," Vera said.
On Sunday, the energy ministry warned production could stop completely in a matter of days due to vandalism. Later in the week, Petroecuador declared a force majeure, suspending exports of its flagship Oriente crude.
Shipments of the country's Napo heavy crude continue with relative normalcy as a key privately-operated pipeline is in service, sources said.
Alongside Petroecuador - which produces 80% of Ecuador's oil - the government is launching a plan to recover well clusters each week, with the majority expected to be back operating within a month.
"We're going to start with the wells that we know have the best performance," Vera said.
The government will revise its 2022 production forecasts due to the crisis, Vera said.
Earlier this month, the minister said the country's production was expected at 550,000 bpd by the end of 2022. (Reporting by Alexandra Valencia Writing by Oliver Griffin Editing by Marguerita Choy)
Temas: Social Issues, Protests, Ecuador