The Ecuadorian government announced a 900% increase in the tariff for transporting Colombian crude through the Transecuatoriano Pipeline, rising from about $2.5 per barrel to over $30. Ecopetrol, impacted by this unilateral measure, is exploring options like exporting via Coveñas to mitigate effects on its southern Colombia operations. Colombia's Ministry of Mines and Energy rejected the decision, calling it an aggression threatening production in Putumayo.
Ecuador's Energy Minister Inés Manzano recently announced a 900% hike in the tariff for crude transported between Ecuador and Colombia via the Transecuatoriano Pipeline (OTA). This raises the cost from about $2.5 to $2.7 per barrel to nearly $30, according to reports from Ecopetrol and Colombia's Ministry of Mines and Energy.
Ricardo Roa, Ecopetrol's president, stated that the decision causes 'importantísimo afectaciones' in transport costs, affecting less than 2% of the company's total production but significantly impacting its 8,500 to 10,000 daily barrels via the OTA. The firm, along with Geopark, Gran Tierra, and Parex, operates in Putumayo, where small and medium producers support jobs and social stability.
In response, Ecopetrol is evaluating alternatives: reactivating the Trasandino Pipeline at a $20 million cost, though it faces social conflicts in Nariño and needs environmental approvals; or trucking crude from Babillas, Guadúas, and Vasconia to the Central Pipeline and then to Coveñas, with tariffs of $12 to $15 per barrel requiring 150 trucks. Roa stressed that the Trasandino won't restart without technical, environmental, and economic viability studies avoiding harm to Awá indigenous communities.
Colombian Minister Edwin Palma rejected the measure as 'unilateral and disproportionate,' violating the 2011 binational agreement and Andean Community principles. Amid falling international oil prices, Palma warned of potential production halts, job losses, and regional economic damage. Colombia calls for diplomatic dialogue to restore fair conditions, prioritizing community mechanisms.
