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.