$ 1,622 million will be invested by the oil companies in the country

Ecuadornews:

President Lenin Moreno highlighted investor confidence in the country. The investment is more than $ 1,600 million for the development of fields in Orellana, Napo and Sucumbíos. Six contracts, with a private investment of $ 1,622 million, signed Petroamazonas for the development of oil fields in the provinces of Napo, Sucumbíos and Orellana.

The President of the Republic, Lenin Moreno, attended the event that took place at the Prosperina campus of the Polytechnic School of the Litoral (Espol). The agreements were signed by the general manager of Petroamazonas, Álex Galárraga, and representatives of private companies.

It was the Minister of Energy and Non-Renewable Natural Resources, Carlos Pérez, who explained the details of the contracts. In the first place, four Oil & Gas contracts were signed with the companies Triboilgas, Cuyabenopetro and Wayraenergy, with an investment of $ 727 million, in the modality of Integrated Specific Services.

According to the Minister, it will be invested in the Cuyabeno, Oso, Yuralpa and Blanca-Vitina fields in the provinces of Orellana, Sucumbíos and Napo. In those sectors, he added, drilling, reactivation, construction and expansion of facilities for oil fields will be carried out.

“An additional production of $ 77.29 million barrels of oil has been estimated for the next 10 years.” He recalled that the process began last March, following the process of launching the proposal, round of questions, visits to the fields and the opening of offers and negotiation. “Negotiations for these fields will allow increasing production at a cost of $ 18.41 per barrel,” Perez added.

“The contracts include attention to communities settled in the provinces of Orellana, Napo and Sucumbíos, with social development projects,” said the Minister. Modifying contracts In addition, two amending contracts were signed with the companies Shushufindi and Pardeliservices, which were signed in 2012.

This will allow an additional investment of $ 895 million. With this investment, the Shushufindi-Block 57 and Libertador fields, located in the province of Sucumbíos, will be developed. For the Minister, with the modifying contracts, benefits are guaranteed for the Ecuadorian State, since the rates that Petroamazonas cancels to the company may be reduced and the risk of the investments transferred to the contractor.

The agreements will allow an increase in the production of 89 million barrels of oil for the next 15 years, which is expected to obtain approximately $ 1,800 million in additional revenues until the year 2032. Perez said that this year Petroamazonas oil has managed to attract private investment for $ 2,341 million, through rounds for smaller fields, including contracts with Oil & Gas and modifying contracts.

Generation of jobs

In his speech, the Head of State highlighted private investment in favor of Ecuador’s development. “The million-dollar investment, of a purely private nature, will be of great benefit to the country.” He remarked that, according to the calculations, “for these six contracts, Ecuador will receive at least $ 3.1 billion up to the year 2032.”

He indicated that currently the fields produce about 500 thousand barrels per day of crude oil; with this signature there will be an additional production of almost 170 million barrels for the next 15 years. In addition, said that thanks to these contracts will generate 4,400 direct and indirect jobs in the provinces of Sucumbíos, Orellana and Napo, in addition to the execution of infrastructure and road works.

“We are demonstrating that investors trust in this new Ecuador, of dialogue, respect and transparency,” he said. He also said that the agreements include compensation for possible damages. “This is a government that has always been concerned with the care of nature, which is why these agreements include compensation and compensation commitments should environmental damage occur.”

For Eduardo Mora, manager of Cuyabenopetro, is proud to sign these agreements and considered transcendental the new moment of economic and productive relations with the country. He stressed that four contracts represent more than $ 700 million in new investments, in addition to the two amendments.

“We reaffirm the confidence in the country and with these contracts, private companies express our commitment to Ecuador and reiterate our desire to contribute to equitable development for all.”

These investments, he said, represent the confidence of a State that promotes an adequate environment and clear rules for private companies, with excellent opportunities to conduct business in Ecuador, to generate employment and contribute to the economy.  

Empresas Prestadora Wayraenergy

The company will be in charge of the fields Oso (province of Orellana) and Yuralpa (province of Napo) and is made up of Vinccleer companies, with more than 60 years of experience, and Arotekh (Venezuelan).

39 communities of Orellana, Napo and Sucumbíos will benefit from social development works. Cuyabenopetro It is formed by the company Avanzia (subsidiary of the Cobra group) that has been operating in Mexico since 1997. (I)

Source: https://www.eltelegrafo.com.ec/noticias/politica/3/contratos-produccion-petrolera-ecuador