Ecuador’s Oil Industry Is In Deep Crisis | OilPrice.com

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A landslide in the Amazonian province of Napo, which caused the Marker River Bridge to collapse, forced the shuttering of Ecuador’s two principal oil pipelines five days ago.

during June 2022 as violent protests swept across the impoverished Andean country and protestors stormed oilfields in the oil-rich Amazon. This was responsible for Ecuador’s 2022 oil production being lower than it had been before the pandemic and failing to reach the official annual planned government target. These events are hindering Lasso’s plans to boost Ecuador’s oil production.

Since the completion of the Coca Codo Sinclair Dam on the Coca River in Napo province by the Sinohydro corporation during November 2016 erosion, landslides and flooding have become persistent problems. In the past, those events have led to the SOTE and OCP pipelines rupturing and spilling crude oil into the surrounding environment including the Coca River which flows into the Napo, a tributary of the Amazon River.

The shuttering of the SOTE and OCP pipelines was undertaken to ensure that if the pipelines are ruptured by landslides there will not be another environmentally damaging spill. Devastating erosion appeared along the banks of the Coca River and in the Cayambe-Coca reserve after the Coca Codo Sinclair Hydroelectric plant commenced operating during late-2016.

Even before the construction of the hydro-plant it was recognized that the SOTE and OCP pipelines pass through highly geological unstable territory which was already increasing the risk of ruptures, oil spills and outages. It is for these reasons that the SOTE and OCP pipelines must be rerouted if the risk of ruptures, related oil spills and outages due to landslides and other erosion related events are to be reduced.

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