Putumayo producers are blessed with having multiple export routes and the flexibility that affords in maximising sales netbacks.
The most direct route is the OTA pipeline to Tumaco. However this route has historically been plagued by attacks leading to downtime and the South Blend crude at Tumaco also fetches one of the biggest discounts to benchmarks vs. other region blends.
This has led to producers accessing Ecuadorian export routes through either the OCP or SOTE pipeline to Esmeraldes. At the port of Esmeraldes, the two key blends are Napo (19° API) and Oriente (24° API). Oriente being the lighter crude fetches a higher price.
Another option that has been employed is the trucking or part truck/part pipe of crude to Coveñas. At this port, the Vasconia blend fetches a good price and sells into the Caribbean market.
At the end of 2016, Amerisur completed its OBA pipeline linking its Platanillo field directly to Ecuadorian export infrastructure. Previously, Amerisur had to truck crude to a pipeline entry point to the OSO or OTA pipeline. The OBA link allowed Amerisur to reduce average transportation costs from c.USD14/bbl to below USD4/bbl. The link, despite taking many years to complete, cost USD18 million and in February 2018 Amerisur announced that the pipeline had been paid by within 15 months with cost savings achieved to that date of USD20 million.
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