PetroEcuador Output Holds at 480,000 b/d as SOTE Pipeline Upgrades Near Completion

PetroEcuador Output Holds at 480,000 b/d as SOTE Pipeline Upgrades Near Completion

Ecuador's state oil company EP PetroEcuador reported January 2026 crude production averaged 480,000 barrels per day (b/d), broadly flat versus December, as ongoing maintenance along the Trans-Ecuadorian Pipeline System (SOTE) constrained throughput from eastern bloc fields.

The figures, disclosed in the company's monthly operational bulletin, place Ecuador's total national output -- including private-sector production from blocks operated by companies such as New Stratus Energy and Enap Sipec -- at approximately 520,000 b/d.

Pipeline modernisation

PetroEcuador's $320 million SOTE modernisation programme, financed through a combination of CAF development bank lending and reinvested oil revenues, is now approximately 85% complete. The upgrade encompasses:

• Replacement of 142km of corroded pipeline segments between Lago Agrio and Esmeraldas
• Installation of three new pumping stations in Sucumbios province
• Expansion of the Esmeraldas refinery's crude intake capacity from 110,000 to 130,000 b/d

"We are on track to restore full pipeline capacity by July," said Carlos Mendez, PetroEcuador's chief operations officer, in a press briefing. "The target of 500,000 b/d for PetroEcuador alone is achievable within this timeline."

Pricing environment

Ecuador's Oriente crude traded at an average discount of $5.20 per barrel to WTI in January, narrowing from the $6.80 discount seen in October 2025. The improvement reflects tighter medium-sour crude markets amid OPEC+ production discipline.

At current Oriente prices of approximately $68/barrel, Ecuador's oil export revenues are projected at $8.1 billion for full-year 2026, according to Ministry of Energy estimates -- a figure that underpins roughly 28% of central government fiscal revenues.

The Energy Ministry also confirmed that a new licensing round for marginal onshore fields in the Oriente basin is expected in the second half of 2026, with pre-qualification documents to be released in April.