Sources said that Ecuador's Petroecuador state oil company declared force majeure on exports of Napo heavy oil due to the closure of a pipeline and oil wells caused by heavy rains.

The weekend's intense rains forced the closure of three hydroelectric power plants, the suspension a major heavy crude pipeline run by private companies, and the temporary closing of wells that produce heavy oil.

The rains of this week were followed by a nationwide power outage, which affected residential users, hospitals, and the subway system in the capital. The government blamed the outage on a malfunctioning transmission line.

OCP, a privately-owned pipeline in Ecuador, decided to stop pumping heavy oil on Monday due to erosion caused by heavy rains.

Sources confirm that as part of its declaration of force majeure, Petroecuador has informed customers that the two tenders, which were scheduled to be awarded to crude cargoes in July for delivery this week, have been postponed until late June.

Petroecuador did not specify how long force majeure would last, which is what justifies cancelling scheduled cargoes under special circumstances. The company informed customers that a new schedule of loading windows will be established as soon as the pipeline resumes.

The state-owned company did not respond immediately to a comment request.

Official figures show that Petroecuador’s crude oil production dropped to 338.500 barrels per daily (bpd), from 390.121 bpd, on Sunday. This was due to the closure of wells. Reporting by Alexandra Valencia from Quito, and Marianna Pararaga from Houston. Editing by Julia Symmes Cobb & Matthew Lewis.