Oil revenues from exports reach $ 3,239 million in the first half of 2021; part goes to cover accumulated debt with contractors

Petroecuador's exports returned almost to pre-pandemic levels. The price recovery helped the increase in resources.

During the first half of 2021,EP Petroecuador generated income of $3,239 million for the Ecuadorian State, from the sale of Oriente and Napo crude oil, in salesspotand long-term contracts. Ecuador exported 55.42 million barrels of Oriente and Napo crude oil, of which $2,237 million were from revenue from long-term contracts and $1,002 million from salesspot,explained the manager of the state company, Pablo Luna.

These figures are positive if one takes into account that they almost reach the levels of 2019, that is, those of the pre-pandemic stage, while at the same time representing a significant recovery compared to what happened in 2020, when crude oil prices were reduced. , consumption contracted and there was a rupture of oil pipelines.

Thus, according to Luna, the best results are mainly due to the increase in the price of Western Texas Intermediate (WTI), a reference marker for Ecuadorian crude, which went from$52.12 in January to $71.35in June and the new marketing strategy for Ecuadorian crude oil. The increase in resources does not necessarily mean an increase in the General State Budget, since there area good portion that should go to cover the debt accumulated with the oil companies for the tariff (carry forward) and for fuel imports.

According to data from Petroecuador, the first quarter of 2019The company exported 56.62 million barrels, a figure slightly higher than that of the current period of 2021, and generated $3,393.65 million in revenue,also a little higher than the current one. On the other hand, if the figure is compared to that of 2020, at the very beginning of the pandemic, the performance is much higher. In the first semester ofIn 2020, Ecuador managed to produce 53.67 million, but only obtained $1,763.6 million.

About the topic, The Minister of Economy, Simón Cueva, informed the Commission of Decentralized Autonomous Governments of the Assembly that in the first half of 2021 a recovery has begun to be seen. However, this helps to increase income "partially and gradually."

He explained that although export revenues are increased, the Government must allocate resources for the import of derivatives. However, the prices of derivatives grow faster than those of crude oil. In addition, oil resources also serve to catch up on existing debt with oil companies. The minister referred to the clause of thecarry forward, a debt that accumulates against the private oil companies that receive tariffs. When the country fails to pay the full rate to companies due to falling prices, the debt accumulates; but when he starts to recover, then he must catch up.

The Ministry of Economy and Finance reported thatFrom January to June 2020, $398 million were paid for fees, while in the same period of 2021 more than $600 million have been paid.According to information from the Ministry, during the first semester of2020, $218 million were accumulated forcarry forward, while from January to May 2021 $32 million were decumulated (that is, the balance was reduced).

Meanwhile, Petroecuador highlighted that the Government's current hydrocarbon policy allows for better economic returns. One of the main achievements is theinterconnection of the Balao-Punta Gorda maritime terminals, which allows larger shipments of Eastern crude oil and diversify markets and as a result, national oil has won awards in the latest contestsspot, as well as for Napo crude oil for the joint loads that have won prizes in the latest contests.

Regarding long-term contracts, the state oil company maintains current agreements with PTT International Trading, Petrochina, Unipec Asia and Shell. Meanwhile, in salesspotcontracts have been made with the companies PTT International Trading, Unipec America, Shell, Trafigura, Tipco Asphalt and Petrochina.

Until June, the public oil company has held six sales contestsspot, that is, an average of one per month. Of the total income received by the country during this first half of 2021, 61% correspond to the sale of Oriente crude and 39% to Napo crude exports.