Ecuador's Oil Defense Front Warns of Deterioration and Dismantling of Petroecuador
The Ecuadorian Oil Defense Front has expressed alarm over the decline of Petroecuador, warning of a potential 'silent dismantling' of the state-owned oil company amid a projected 8.5 percent drop in crude oil production for 2025. The sector has seen a significant reduction in public investment and workforce, alongside an increase in fuel imports, raising concerns about the country's growing dependency on external sources. The organization is calling for heightened scrutiny of energy management to avert further damage to the oil industry.
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The Ecuadorian Oil Defense Front has raised concerns about the deterioration of Petroecuador, suggesting a potential 'silent dismantling' of the state-owned oil company. Crude oil production for 2025 is projected at 127.4 million barrels, averaging 349,167 barrels per day, an 8.5 percent decrease from the previous year.
Domestic production of refined products has also dropped, leading to 74.3 million barrels of fuel imports, a 16.8 percent increase year-on-year, exacerbating external dependence. Public investment in the oil sector has seen a significant decline, with a budget execution of $485.4 million, down 72.97 percent from 2024.
Additionally, the dismissal of 1,379 workers represents a 13.7 percent reduction in the workforce. Legal concerns have been raised regarding contracts signed by OCP Ecuador S.A., which was transferred to state ownership on December 1, 2024. The organization urged scrutiny of energy management to prevent irreversible damage to the oil industry.
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