Fire Halts Production At Ecuador's Biggest Oil Refinery
A fuel tank fire on Monday halted production at Ecuador's largest oil refinery, sparking the evacuation of nearby residents as a giant plume of smoke billowed from the facility.
Operations at the plant in Esmeraldas province, which can refine 110,000 barrels per day (bpd), were suspended "to safeguard the security of the facilities and personnel," state oil company Petroecuador said.
It said no one was injured in the blaze, and five people received medical attention for minor effects of smoke inhalation.
Workers were evacuated from the site that was cordoned off by soldiers and refinery staff, an AFP journalist observed.
Ecuadoran police said it was evacuating residents of the area, without specifying how many.
The cause of the fire at the refinery near Ecuador's border with Colombia was not yet known.
Writing on X, Energy Minister Ines Manzano said the situation was "under control," but the assurance did little to quell the concerns of residents.
Ramiro Medina, a plant worker, said "a loud noise" was heard, "and we all started running."
"What is happening now is quite worrying," added community representative Edgar Romero.
"We smelled something and thought it was coming from the Jaime Hurtado school, which was being fumigated today.... (but then) we smelled gasoline... We hope that the authorities will take action."
Petroecuador, which operates the facility, did not specify the amount of fuel that was in the tank when the fire broke out.
Ecuador is one of South America's top oil producers and is heavily reliant on its petroleum exports for revenue.
In 2024, the country produced about 475,000 barrels of crude per day, of which it sold nearly three-quarters, earning $8.6 billion in oil exports.
But production last year was disrupted by recurring power cuts linked to the worst drought in 60 years, which reduced the level of hydroelectric reservoirs to historic lows.
In March this year, a massive fuel pipeline leak saw more than 25,000 barrels of crude spill into three rivers, in an incident that also forced a suspension of oil exports.
Ecuador has two other refineries, with respective capacity for 45,000 and 20,000 barrels per day.
The government said in a statement Monday that "the supply of fuel is completely guaranteed throughout the country" despite the fire.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Int'l Business Times
30-05-2025
- Int'l Business Times
Britain's Hard-right Reform UK To Accept Crypto Donations
Britain's hard-right Reform UK has become the first political party in the country to accept donations through bitcoin and other cryptocurrencies, raising fresh concerns over transparency. Reform UK leader Nigel Farage, whose party has risen in the polls, made the announcement at a bitcoin conference in Las Vegas on Thursday evening. "As of now, provided you are an eligible UK donor ... we are the first political party in Britain that can accept donations in Bitcoin and other cryptocurrencies," he said. Farage has pledged to launch a "crypto revolution" if Reform UK comes to power, including the creation of a bitcoin digital reserve at the Bank of England -- inspired by recent measures in the United States. On the party's website on Friday, it was possible to make a donation via cryptocurrency. Reform UK is the "first major political party in Europe to accept cryptocurrency donations," according to a statement from British payments firm Radom, which is managing the transactions. But, for analysts, the move has raised concerns over potential misuse and a lack of transparency in political donations. "Anyone can receive crypto donations, as cryptocurrencies are permission-less and don't require bank authorisation," Larisa Yarovaya, associate professor of finance at Southampton Business School, told AFP. "This allows even those excluded from traditional banking to access financial services." She cautioned that crypto donations raise "concerns around transparency, regulation, and potential misuse." Similar concerns have been voiced in the United States, where President Donald Trump received millions in crypto donations for his last election campaign. Now an outspoken advocate of the technology, Trump's stance has triggered questions over potential conflicts of interest. For Farage, accepting crypto donations is "a way to demonstrate his allegiance with financial technology," Charles Morris, founder of analytics firm ByteTree, told AFP. The incumbent Labour party also aims to make the UK a global leader in the crypto sector. Back in April, finance minister Rachel Reeves set out new rules to regulate crypto-related activities. In Britain's July 2024 general election, anti-immigration Reform UK won just over 14 percent of the vote and five seats in parliament. Farage made another breakthrough in local elections earlier this month.
Int'l Business Times
30-05-2025
- Int'l Business Times
New To South Africa, Saffron Holds Promise
Livestock farmer Joe Kroon turned to saffron in desperation when drought threatened his livelihood and, as this season's harvest winds down, he is encouraged by the potential of a new entry into South Africa's farming catalogue. "Every year that we've planted, it's got better and better," said Kroon, who started growing the world's most expensive spice, mostly associated with Iran and Afghanistan, around five years ago with corms imported from The Netherlands. With around one hectare (2.5 acres) under cultivation at his farm near the town of Graaf Reinet in the dry Karoo region, Kroon is among the few South African farmers pioneering cultivation of the delicate purple crocus and its precious red threads. "Animals were dying and there's no help from the government so I had to find other means of making an income. I started researching and one of the things that came up was saffron," he told AFP. "It sort of exponentially grows each year," he said. "At the end of this year, we're going to lift the crop and replant a bigger area." His partner, Ross Blakeway, expects this season's yield could reach about six kilogrammes (13 pounds), around double the amount of last year. It takes about 150,000 flowers to collect a kilogramme of threads. Blakeway said output of their Karoo Saffron partnership is only for the domestic market, including local chefs and as an ingredient in a sauce and a Pure Karoo health range, although there had been some interest from Europe. And while there is promise for South African saffron, it is not a "get rich quick", he said. The corms are expensive and, "it's popular amongst the porcupines and rabbits, so you really have to protect your land," he said. Saffricon, which says it is the largest commercial producer in South Africa with seven hectares, also began cultivation around five years ago. In the process of finding the correct conditions, Saffricon moved several times before settling in the Piketberg area in the Western Cape, said the company's production coordinator, Tiaan Engelbrecht. The company -- which also shares advice and trial packs to potential cultivators, from domestic gardeners to commercial farmers -- wants to build volume for local saffron to become a worthwhile export. "It's been met with a lot of hope for being able to diversify the crops that are available in the country, especially for people who have smaller plots," Engelbrecht said, although there had been some scepticism too. "It's just been absolutely wonderful to see people still being excited about growing the agriculture industry and being excited about new things," he said. Farmer Joe Kroon weighs saffron threads harvested from his farm on the outskirts of Graaff Reinet AFP It takes about 150,000 flowers to produce one kilogramme of saffron, the world's most expensive spice AFP
Int'l Business Times
30-05-2025
- Int'l Business Times
Airline Chiefs Meet In India Amid Turbulence Of Trump
Airline bosses meet from Sunday in New Delhi at their annual industry conference, battling to mitigate the impact of Donald Trump's policies that have hit travel to the United States and potentially raised costs for aviation. Trump's bid to impose tariffs on the United States' trading partners have upended commercial flows, with legal challenges against his plan adding to uncertainties. The tense atmosphere in the United States, from Trump's plans to revoke foreign students' visas to reports of travellers detained at US borders, has also put a dampener on tourism. "The airline sector is always sensitive to the economic and political climate," Paul Chiambaretto, professor of strategy and marketing at France's Montpellier Business School, told AFP. "Any form of uncertainty will reduce traffic," he added, noting that "especially" impacted business travellers, the most profitable segment. The influential International Air Transport Association (IATA) is due to update its traffic and profitability projections as the delegates from the group gathering 350 airlines hold their talks. In December it forecast a record 5.2 billion air journeys in 2025 -- up 6.7 percent from an already unprecedented 2024. It predicted carriers would generate $36.6 billion in cumulative net profit, on revenue exceeding $1 trillion. However, the US president's "Liberation Day" tariff blitz and his administration's stance on issues from immigration to education could throw a spanner in the works. As early as March, the North American air transport market, which represents 23 percent of global traffic, began to decline and several US-based airlines warned they would not meet their financial targets. A study released this month by the World Travel and Tourism Council and Oxford Economics found that the United States was on track to lose some $12.5 billion in revenue from foreign tourists this year owing to worries about travelling to the country. The group, made up of leading travel firms, said this "represents a direct blow to the US economy overall, impacting communities, jobs, and businesses from coast to coast". "While other nations are rolling out the welcome mat, the US government is putting up the 'closed' sign," WTTC president Julia Simpson said. Didier Brechemier, an airline industry expert at Roland Berger, said: "Today, bookings for the North Atlantic are lower than they were at the same time last year." IATA Director General Willie Walsh noted on Thursday "some signs of fragility of consumer and business confidence with continued weakness in the US domestic market and a sharp fall in North American premium class travel". Air transport has for decades benefited from the removal of import taxes, rising living standards -- particularly in Asia -- and open borders, with the number of air trips tripling since 2000. But the return of protectionism is endangering the industrial model of aircraft manufacturers, whose assembly lines mobilise suppliers worldwide, with costs likely to increase, putting more of a burden on carriers. There's good news for carriers, though, with oil prices falling owing to an anticipated slowdown in economic growth. That could help firms reduce their fuel bills -- representing between a quarter and a third of their operational costs -- by hundreds of millions of dollars. Washington's new Republican administration is also fully supporting the development of fossil fuels, in contrast to that of Democratic former president Joe Biden, who subsidised Sustainable Aviation Fuel (SAF). Sustainable development "has largely disappeared from the airline industry's immediate priorities", says Jerome Bouchard, a partner at consultants Oliver Wyman. Also likely on the agenda for IATA will be the impact of geopolitical tensions on the industry. India is experiencing explosive growth, with the number of airports and passengers in the world's most populous nation doubling over the past decade, while major airlines IndiGo and Air India have hundreds of aircraft on order. But the country's recent deadly spat with neighbour Pakistan, which saw the two sides impose airspace bans on each other, highlighted the fragility of civil aviation in the face of such upheavals. The row poses an additional complication for connections to Asia, as Russia has banned US and EU aircraft overflights in retaliation for sanctions linked to its invasion of Ukraine.
