August 21, 2025 [Pipeline Technology Journal]- Peru’s state-run oil company Petroperu is working on an agreement with its Ecuadorean counterpart, Petroecuador, to connect oil wells in Ecuador to Peru’s northern pipeline, the company’s chairman said Thursday, August 7, 2025.

The framework agreement, which is being drafted by Peru’s Ministry of Energy and Mines, would include commitments for an approximately 37-mile (60-kilometer) connection line in a shared Amazonian border region.

While the Petroperu Chairman Alejandro Narvaez said the specific investment and financing for the project have yet to be defined, the project is expected to allow Ecuadorean crude to reach Peru’s newly expanded 95,000 barrel-per-day Talara refinery via the pipeline.

Petroperu CEO Oscar Vera, speaking at the same conference, said Petroecuador would likely make the majority of the investment.

“It is of greater interest to them, because it is very costly for Petroecuador to transport crude using their current methods,” Vera said.

The Peruvian oil company is currently navigating a crisis following a larger-than-planned investment in the Talara refinery, but expects to post a profit of $103 million next year, recovering from an estimated loss of $223 million for 2025.

Peru’s 680-mile (1,100-kilometer) pipeline, which has suffered frequent attacks from local communities, is currently operational but not in service due to a lack of active transport contracts.