Ecuador to open search for refinery operator

Ecuador's government issued a decree today that paves the way for transferring the operation of the former Opec country's largest oil refinery to the private sector.

The 110,000 b/d Esmeraldas refinery, owned and operated by state-owned PetroEcuador, has been running sporadically for years, partly because of faulty maintenance.

Under decree 1094, President Lenin Moreno grants exceptional authorization for PetroEcuador to operate the refinery in conjunction with a private-sector partner.

The ministries of non-renewable natural resources, economy and finance will together define the contractual mechanism for the investor to participate at its own risk to improve the refinery's operations and the quality of the fuel that it produces.

"This is not a process of monetization, it is a process of transfer and delegation of part of the operations of the Esmeraldas refinery, which still belongs to the Ecuadorean state," oil minister Rene Ortiz said in a statement.

The transfer is part of a government austerity package that included the removal of most fuel subsidies. The first increase under a new market-based fuel pricing system is scheduled to take place this weekend.

By Patricia Garip