On Friday, July 10, 2020, the President of Ecuador issued Executive Decree No. 1094 authorizing, on an exceptional basis, the delegation of the joint management of the Esmeraldas Refinery (REE) with EP Petroecuador to private enterprise. According to the Executive Decree, the private company must carry out the necessary studies and investments at its own expense and risk to improve the quality of the fuels and efficiency of the REE and to reduce emissions.
Management delegation does not imply sale of the asset, so the REE will continue to be owned by the State.
In addition, the company that wins the international tender will be required to build, at its own expense and risk, a refinery exclusively owned by it that will consist of a high-conversion facility to refine REE’s waste in exchange for a fee. This method is comparable to a maquila in which the refined waste is returned to EP PETROECUADOR for subsequent sale.
The Ministry of Energy and Non-Renewable Natural Resources will be in charge of carrying out the public tender for the selection of the private company, for which it must prepare the bidding specifications and the contractual model.