Petroecuador soon to hold 2.1 million bbl/month for spot market
Beginning in January 2024, state-owned Petroecuador, will release 2.16 million bbl of crude oil monthly for trading in the spot market.
This market entry follows the expiration, in December 2023, of two contracts Petroecuador holds with Shell Western Supply and Trading Ltd. and PTT International Trading PTE Ltd.
Petroecuador will have about 26 million bbl/year of oil available and could engage in more spot market exports, placing six shipments of 360,000 bbl each, according to the company.
It is estimated that by 2024, 60% of the exportable crude balance will be placed in the market, with the remaining 40% dedicated to fulfilling long-term commitments.
The contract with Shell that is set to expire was signed in December 2019. The last two shipments of 360,000 bbl of Oriente crude (22-24 API) were delivered between Dec. 1 and Dec. 5 of this year.
The soon-to-expire contract with PTT was signed in April 2016. Upon expiration, 1.44 million bbl of Oriente and Napo crude will be released.
Camilo Ciruzzi | South America Correspondent
Ciruzzi is a journalist based in the Argentine province of Río Negro. He has over 30 years of experience in radio and print media. Ciruzzi studied Communication Sciences at the University of Buenos Aires and specialized in energy, political economy, and finance.
