Ecuador Further Delays Oil Exports

QUITO -(Dow Jones)- Ecuador’s oil and mining minister, Galo Chiriboga, said Friday the government has declared a force majeure on its oil exports.

“We have low levels of crude in stock and we need to supply local necessities for refining crude,” said a high-level official.

The official said the next shipments could be delayed by three or four days, depending on when the SOTE, the nation’s main pipeline, resumes operations. The first shipments that will be delayed are 400,000 barrels for Agip SpA and 360, 000 for Valero Energy Corp. (VLO).

A force majeure is a contractual clause that protects one of the parties from liability if it can’t meet obligations due to factors beyond its control.

According to Chiriboga, there are at least 80 meters of the SOTE pipeline affected by the landslide and around 4,000 barrels of crude have spilled.

“We hope to repair the SOTE in around three days, but it could take around six days,” Chiriboga said.

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