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Ecuador will return to export crude after lifting the force majeure clause
Posted On 11 May 2020
The Ministry of Energy and Natural Resources Non – Renewable rose yesterday, Saturday 9 May 2020, the clause of force majeure, declared on 10 April 2020 the operators of exploration and exploitation of hydrocarbons .
Ecuador will return to export crude after lifting the force majeure clause
Ecuador will return to export crude after lifting the force majeure clause
The force majeure is a clause in oil contracts allowing suspend commitments in situations certain .
In this case, on 10 April 2020, the Ministry declared force majeure due to breakage of the system of Trans – Ecuadorian Pipeline ( SOTE ) and the Heavy Crude Oil Pipeline ( OCP ), caused by an event of nature in the sector from the San Rafael waterfall , between Napo and Sucumbíos .
The portfolio of state reported that they recognize the companies the duration of the suspension of its operations , as long as the strike has affected more than 50% of its activities in production .
The resolution was made because SOTE and OCP are technically operational for the reception and transportation of crude , from the stations located in Lago Agrio to the export terminals in Esmeraldas .
The country plans to comply with the shipment of 2, 16 million barrels of Oriente crude , 1.8 of Napo crude , 950,000 of Fuel Oil 6 and 380,000 of Fuel Oil 4 , which were rescheduled due to the declaration of Force Majeure , without the State having to incur any contractual fine.
The operators of the sector of hydrocarbons , which by adverse circumstances related to the pandemic of the covid-19 and resolutions of the cantonal COE or provincial hindering the operation normal in oil blocks located on both the Amazon as a region Litoral, may apply to the Ministry the declaration of force majeure of its operations.
With this decision , the National Government normalizes and reactivates oil production and transport operations in a technical and gradual manner until reaching the levels registered before the incident .
https://www.elcomercio.com/tendencia/ecuador-crudo-clausula-fuerza-mayor.html
