Ecuador lifts “force majeure” from its oil operations

RIO DE JANEIRO, BRAZIL – The Ministry of Energy and Mines lifted the state of “force majeure” for all operations in the hydrocarbon value chain, declared on June 19, due to the effects of the social protests that affected infrastructure and partially paralyzed hydrocarbon operations in the Amazon.

Minister Xavier Vera Grunauer signed this July 12 Resolution No. MEM-MEM-2022-0007-RM to terminate the state of “force majeure,” and the private hydrocarbon companies operating in the country were officially notified of the resolution.

Likewise, the public company Petroecuador and the Agency for Regulation and Control of Energy and Non-Renewable Natural Resources were informed of the subscription of the document.

According to the Ministry, “this decision will strengthen the operations of the country’s oil sector, in addition to maintaining compliance with the established schedules regarding crude oil export shipments abroad”.

The declaration of “force majeure” by fortuitous event protects the country against possible legal claims for non-compliance with the contractual clauses with international companies.

The clause was applied because the facts were linked to a situation of force majeure or fortuitous event that directly affected the execution and compliance of the international commercialization of hydrocarbons, and which is stipulated in the contracts and awards in force in the area of International Trade of EP Petroecuador and the Civil Code, article 30.

With information from Bloomberg

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