Ecuador Government to Take Over Crude Pipeline from OCP Ecuador Until New Tender Launched
(Reuters) - Ecuador's government will take over operations on a heavy crude oil pipeline until a fresh tender is launched, the nation's energy and mines energy said.
The transfer from OCP Ecuador, a private consortium which had run the pipeline, to the government will be carried out on Nov. 30, the ministry added in a statement.
OCP Ecuador and the government inked a mediation agreement in January for the handover of the pipeline, which can transport up to 450,000 bpd despite operating below capacity.
OCP Ecuador's contract had expired Jan. 20.
"The decision [to put the pipeline under government control] was taken after reviewing OCP Ecuador's requests for an extension," the ministry said. However, "the contract and the hydrocarbons law do not allow an extension, but the transfer to the state."
OCP Ecuador did not immediately respond to a request for comment.
Crude oil will continue moving through the pipeline as the transfer is being carried out, the ministry said, adding that in coming weeks, it will announce its management scheme and new tender guidelines.
The state also operates the SOTE oil pipeline.
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