2 days ago
Peru's Petroperu eyes pipeline link for Ecuador oil
LIMA, Aug 7 (Reuters) - State-run Petroperu is working on a framework agreement with its counterpart Petroecuador to connect oil wells in Ecuador with Peru's northern pipeline, its chairman said on Thursday.
The agreement, which is being drafted by Peru's Ministry of Energy and Mines, would include investment and execution commitments for an approximately 60-kilometer (37-mile) connection line in an Amazonian region on the countries' shared border.
"The exact investment for this connection and how it will be financed have yet to be defined," Petroperu Chairman Alejandro Narvaez said.
Speaking at a conference with the foreign press, the executive stated that the project, after a development period, would allow Ecuadorean crude to reach the newly expanded 95,000 barrel-per-day Talara refinery in northern Peru via the pipeline.
The Peruvian oil company, which is navigating a crisis after the larger-than-planned investment in Talara, expects to post a profit of $103 million next year, recovering from an estimated loss of $223 million for 2025.
Petroperu CEO Oscar Vera, speaking at the same conference, said Petroecuador would likely make the majority of the investment.
"It is of greater interest to them, because it is very costly for Petroecuador to transport crude using their current methods," Vera said.
Petroecuador did not immediately respond to a request for comment.
Peru's 1,100-kilometer pipeline, which has suffered frequent attacks from local communities that have halted its activities, is currently operational but is not in service as it has no active transport contracts with area producers.
Separately, Petroperu announced earlier this week that it had exported approximately 137,500 barrels of commercial jet fuel to Ecuador from Talara.
