In Esmeraldas and Santo Domingo, Ecuador, organized crime groups are increasingly engaging in fuel theft from the state-run oil company Petroecuador in order to support drug trafficking activities. This illicit activity has resulted in significant financial losses for the country’s primary industry, with criminals tapping into state-owned fuel pipelines to obtain gasoline, diesel, and other fuels for use in drug production and transportation.
These criminals have escalated their violent attacks on oil fields, stealing copper cabling, extorting workers, and resorting to physical violence. According to Petroecuador and its union, fuel theft has led to cumulative losses of $215.1 million between 2022 and October 2024, with the number of illegal taps increasing from 32 in 2022 to 773 by October 2024. While this represents a small portion of Petroecuador’s $7.5 billion national income, officials are concerned about the impact on public finances and the boost given to drug trafficking.
Ecuador has 1,655 kilometers of state-controlled fuel pipelines that traverse its Pacific coast and remote Amazon areas, sparking protests from local communities. Illegal taps have been discovered along these pipelines, with at least 136 taps reported on the Esmeraldas-Santo Domingo pipeline in 2024 alone, resulting in losses of $17 million from that section alone.
In response to this escalating issue, the government has increased military protection of oil installations, implemented night patrols, and authorized the use of drones to monitor fuel pipelines. Petroecuador is exploring new technologies to detect taps more efficiently and is considering the establishment of a joint command center with law enforcement agencies for a quicker response.
Authorities believe that some of the stolen fuel is used by local criminals to produce precursor chemicals for drug production, with the gasoline also utilized in high-speed boats transporting drugs to Mexico and Central America via the Pacific. The rise in criminal activities linked to Mexican cartels and the Albanian mafia has prompted concerns about public safety and security, especially as the country’s President Daniel Noboa faces re-election in February 2025.
“According to Lieutenant Colonel Hugo Amores, head of the police hydrocarbon crimes unit, in order to achieve success, judicial reforms are essential. Amores emphasized the necessity of legal changes, stating that without robust laws, the efforts of law enforcement and the military are ineffective. He likened the current situation to a revolving door, where detainees are taken in only to be released shortly after.
Fuel-related offenses can result in sentences ranging from 2 months to five years, while charges related to organized crime can lead to a 10-year imprisonment, and murder convictions can carry up to 26 years of incarceration. With over 90% of fuel pipelines hidden underground, criminals resort to digging around a meter deep to access and tap into the tubing, diverting the fuel through illegal means to tanker trucks or hidden storage facilities on private properties.
During a visit, Petroecuador technicians revealed that they often have to improvise during repairs. To prevent further illegal taps, technicians encase the makeshift connections in a metal cylinder, a process that can take up to five hours. In case of spills caused by taps, pumping operations are halted, and cleanup efforts can take up to 12 hours.
The police have seized 18 storage facilities used for hoarding stolen fuel this year, primarily in the Amazon region. Renato Rivera, Director of the Ecuadorean Organized Crime Observatory, noted that fuel theft is integral to the profitability of criminal organizations in Ecuador. The provinces of Guayas, Santa Elena, Manabi, and Esmeraldas, which are major drug transport hubs, are the most affected by illegal taps, as reported by Amores’ hydrocarbons crimes unit.
Approximately 30,000 gallons of stolen fuel, equivalent to three tanker trucks, are clandestinely transported across the country daily. The police have seen a 77% increase in confiscated stolen fuel over the past year. Notably, the army discovered an illegal refinery in the Sucumbios province capable of producing 10,000 gallons of gasoline per week for cocaine production.
Despite increased controls, Amores highlighted the rise in criminal activities. Rivera underscored the need to focus on dismantling criminal networks behind fuel trafficking, rather than solely targeting individuals caught in the act. The hydrocarbons crimes unit has identified four fuel smuggling routes along the borders with Colombia and Peru.
While theft of copper wiring from oil facilities is unrelated to drug production, it has resulted in $4 million in losses and a 1% decrease in output over nine months. Additionally, workers and contractors in some provinces have been victims of extortion, with demands for money and threats of violence if payments are not made.
In the Esmeraldas province, where Ecuador’s largest refinery is located, approximately 25% to 30% of the 700 workers have been extorted. Union leader Jipson Martinez, who faced extortion attempts and threats, emphasized the prevalence of criminal activities targeting workers in the region.”
In a chilling admission, Martinez declared, “We are vulnerable,” highlighting the dire circumstances faced by the individuals in the reported areas of Quito, Esmeraldas, and Santo Domingo. Further insights were provided by journalist Yury Garcia in Guayaquil. This report was compiled by our dedicated writer, Julia Symmes Cobb, and meticulously reviewed by editor Anna Driver.
