Ecuador lifts oil force majeure as crisis eases

Spanish Market: Crude oil
06/01/22

Ecuador lifted force majeure on its oil sector after its two main crude pipelines resumed operations.

Another flare-up in riverbed erosion in Napo province led to the December shutdowns of state-owned PetroEcuador's 360,000 b/d SOTE pipeline and the 450,000 b/d OCP line owned by a consortium of other producers. The government declared force majeure on 12 December to facilitate the reprogramming of exports.

Ecuador's crude production recovered to around 412,000 b/d on 4 January, up from a December average of just 207,000 b/d but still shy of a January-November average of 470,000 b/d, according to energy regulator ARC.

By Alberto Araujo

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

18/12/24

US funding bill to allow year-round E15 sales

Washington, 17 December (Argus) — A stopgap government funding measure that leaders in the US House of Representatives unveiled late Tuesday would authorize year-round nationwide sales of 15pc ethanol gasoline (E15) and offer short-term biofuel blending relief to some small refiners. The 1,547-page bill, which is set for a vote in the coming days, is needed to avoid a government shutdown that would otherwise begin on Saturday. The bill would fund the government through 14 March and extend key expiring programs, such as agricultural support from the farm bill. It would also provide billions of dollars in disaster relief and pay the full cost of rebuilding the Francis Scott Key bridge in Maryland, which collapsed earlier this year after being hit by a containership. The inclusion of the E15 language, based on a bill by US senator Deb Fischer (R-Nebraska), marks a major win for ethanol producers and farm state lawmakers who have spent years lobbying to permanently allow year-round E15 sales. The bill would also provide short-term relief to some small refiners under the Renewable Fuel Standard that retired renewable identification numbers (RINs) in 2016-18 in cases when their requests for "hardship" waivers remained pending for years. The bill would return some of those RINs to the small refiners and make them eligible for compliance in future years. E15 was historically unavailable year-round because of language in the Clean Air Act that imposes more stringent fuel volatility requirements during summer months. In president-elect Donald Trump's first term, regulators began to allow year-round E15 sales by extending a waiver available for 10pc ethanol gasoline (E10), but a federal court in 2021 struck that down . Federal regulators have issued emergency waivers retaining year-round E15 sales over the last three summers. Enacting the stopgap funding bill would also make it unnecessary for eight states to follow through with a costly gasoline blendstock reformulation — set to begin as early as next summer — they had requested as a way to retain year-round E15 sales in the midcontinent . Oil industry groups last month petitioned EPA to delay the fuel reformulation until after the 2025 summer driving season, citing concerns about inadequate fuel supply and the prospects that a legislative fix would make required infrastructure changes unnecessary. Ethanol groups say the E15 legislative change could pave the way for retailers to more widely offer the high-ethanol fuel blend, which is currently available at 3,400 retail stations and last summer was about 10-30¢/USG cheaper than 10pc ethanol gasoline (E10). Offering the fuel year-round would be "an early Christmas present to American drivers," ethanol industry group Growth Energy chief executive Emily Skor said. House speaker Mike Johnson (R-Louisiana) has faced blowback from many Republicans in his caucus for negotiating such a sprawling bill that has tens of billions of dollars in new spending, after vowing to buck a practice of preparing a "Christmas tree bill" that forces lawmakers to vote on a must-pass bill right before the holidays. Johnson said today the bill remains a "small" funding bill, but that it needed to expand because of "things that were out of our control" such as hurricanes and economic aid for farmers. The Republican backlash could make it more difficult for Johnson to pass the bill, but Democrats are expected to provide broad support. By Payne Williams and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Argentina touts quarterly economic growth

17/12/24

Argentina touts quarterly economic growth

Montevideo, 17 December (Argus) — Argentina's macroeconomic conditions continue to stabilize, with growth picking up and inflation trending down. The economy expanded by 3.9pc in the third quarter of the year compared to the previous three months, according to preliminary data from the statistics agency (Indec). It was the first quarter-on-quarter growth since President Javier Milei took office a year ago during a deep recession with a promise to overhaul the long-struggling economy. The economy contracted by 1.9pc in the fourth quarter of 2023, by 2.1pc in the first quarter of 2024 and by 1.7pc in the second quarter. While the economy is still down by 2.1pc compared to a year earlier, the government presented the data, together with falling inflation, as evidence that Milei's strategy to deregulate and shrink the state is working. Inflation in November was 2.4pc, a huge decline from the 25pc when Milei took office in December 2023. Accumulated inflation through November was 112pc. According to Indec, private consumption was up by 4.6pc from quarter to quarter and investment by 12pc. The country has had a fiscal surplus for nine months. The currency has stabilized after a brutal devaluation early in 2024 of more than 50pc. Exports grew by 3.2pc from the second quarter and are the most positive economic indicator so far this year. Exports in the first three quarters of 2024 were up by 20pc compared to a year earlier. The energy sector in the GDP calculation increased by only 0.4pc in third quarter, but it plays an important role in the trade balance. The country will have a trade surplus this year close $20bn compared with a $6.9bn deficit in 2023, according to the central bank. Argentina registered its first energy surplus in 15 years in the first half of 2024, exporting $4.81bn and importing $3.79bn. Crude exports were up by 60pc compared to 2023. Oil and gas trade organization Ceph forecasts an energy surplus of $25bn by 2030, based on projections of crude output of 1.5mn b/d and natural gas at 230mn m³/d. The government has reduced from 18 to eight the number of cabinet ministries and eliminated hundreds of regulations. Deregulation and transformation minister Federico Sturzeneggar announced in early December that approximately 4,500 regulations would be eliminated in 2025. But the austerity measures have caused a spike in poverty, with more than 50pc of the population living below the poverty line, up from 41.7pc in December 2023. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Shell takes FID on Nigeria’s Bonga North oil project

16/12/24

Shell takes FID on Nigeria’s Bonga North oil project

Lagos, 16 December (Argus) — Shell has taken a final investment decision (FID) on Nigeria's Bonga North field, aiming for first oil from the deepwater project by 2030. The firm expects crude production from Bonga North to peak at 110,000 b/d but it has not given a timeframe. Bonga North — which currently has estimated recoverable resources of over 300mn bl of oil equivalent (boe) — will involve drilling up to 16 wells and will be tied back to the existing 225,000 b/d Bonga floating production, storage and offloading (FPSO) facility. The FPSO already handles output from the Bonga Main and Bonga North West fields, which started up in 2005 and 2014, respectively. Crude production from the FPSO averaged 120,000 b/d in January-November, with output in November rising by 9pc on the month to 135,000 b/d, according to Nigeria's upstream regulator NUPRC. Shell said modifications to the FPSO will be required to accommodate Bonga North, but a source told Argus today that these will largely be limited to the facility's topsides. The company previously told Argus that a separate and more thoroughgoing FPSO life-extension programme, which "will run well into 2029", had been put in place because the facility was originally designed to operate only until 2025. Shell's Nigerian offshore subsidiary operates the Bonga North project with a 55pc stake under a production-sharing contract with state-owned NNPC. ExxonMobil, TotalEnergies and Italy's Eni are the other project partners with 20pc 12.5pc and 12.5pc stakes, respectively. The Bonga fields are located in Nigeria's OML 118 licence at water depths exceeding 1,000m. In addition to Bonga Main, Bonga North West and Bonga North, the block also holds the undeveloped Bonga South West oil field, which NNPC said will be developed in three phases. Bonga South West will have its own separate FPSO and produce 150,000 b/d at peak between 2027 and 2031, NNPC said. By Adebiyi Olusolape Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Libya declares force majeure at Zawiya refinery

15/12/24

Libya declares force majeure at Zawiya refinery

London, 15 December (Argus) — Libya's state-owned NOC declared force majeure at its 120,000 b/d Zawiya refinery today following clashes between armed groups near the facility. NOC said a number of storage tanks were hit, causing fires. These were subsequently brought under control, it added. Zawiya is Libya's largest operational refinery, with most of its production absorbed domestically. It runs on crude from Libya's Repsol-led El Sharara oil field. The rest of the field's crude is exported as the Esharara grade from a nearby loading terminal which forms part of the wider Zawiya complex. Any prolonged fighting and wider damage to the Zawiya complex could threaten production at El Sharara, particularly if exports are forced to stop. Zawiya exported 160,000 b/d of Esharara crude last month, according to Kpler, and is scheduled to load eight cargoes also worth about 160,000 b/d in December. Political instability has led to several forced shutdowns of oil production facilities over the past decade or so. El Sharara only just returned to production in early October following a forced outage which also affected other fields throughout the country. Libya produced 1.24mn b/d of crude in November, Argus estimates. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexico’s industrial output falls 1.2pc in October

13/12/24

Mexico’s industrial output falls 1.2pc in October

Mexico City, 13 December (Argus) — Mexico's industrial production dropped by 1.2pc in October, driven by declines in manufacturing and mining, statistics agency Inegi said today. The seasonally adjusted industrial activity indicator (IMAI) reversed a 0.6pc increase recorded in September, surprising analysts who had expected a smaller contraction. Banorte had forecast a 0.1pc decline, while the market consensus pointed to a 0.6pc decrease. The sharper-than-expected downturn was largely attributed to a 1.9pc drop in manufacturing, which accounts for 63pc of the IMAI. This followed growth of 1pc in September and 0.4pc in August. Within manufacturing, transportation manufacturing — a key segment making up 12pc of the sector —fell by 4.3pc, reversing a 2pc increase in September and a 1pc uptick in August. Despite this decline, light vehicle production reached 382,101 units in October, up from 378,583 in September, on track to set a new annual record . Mexican auto industry association AMIA told Argus the drop in transportation manufacturing was unrelated to light vehicle production. Instead, Alejandro Cervantes, director of quantitative economic research at Banorte, suggested the decline could be linked to trucks and heavy-duty equipment manufacturing. "Despite [being] a negative month for industrial activity and possibly for aggregate economic activity, the fact is that we have seen a strong rebound in the production of vehicles," said Cervantes. Mining, which makes up 12pc of the IMAI, contracted by 1.9pc in October, following a 1.2pc decline in September. Oil and gas extraction fell by 0.9pc, marking its fourth consecutive month of contraction. In contrast, construction — accounting for 19pc of the IMAI — increased by 0.5pc in October after a 1.1pc increase in September. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more