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Ecuador will invest more than $ 1,400 million in eight oil fields
Posted On 15 Aug 2018
Ecuadornews:
The Ecuadorian Government plans a private investment of about $ 1,400 million for the next five years in several oil fields.
This was estimated by Álex Galárraga, manager of Petroamazonas EP, and Patricio Larrea, vice minister of Hydrocarbons, within the framework of signing agreements with national and foreign companies that participated in the process called Oil & Gas, which began last March and will conclude next month with the signing of specific service contracts.
For the Cuyabeno / Sansahuari, Oso, Yuralpa and Blanca / Vinita fields, within the Oil & Gas process, which are located in Orellana, Sucumbíos and Napo, with the increase in production, it is expected that $ 727.85 million will be invested.
The Ministry of Hydrocarbons and Petroamazonas, public company to which the fields belong, announced yesterday to the companies that will be in charge of the increase of that production: Triboilgas Cía. Ltda. (Ecuador), which will invest $ 106.99 million; Vinccler C.A., which will invest $ 107.60 million; Arotekh C.A., which will invest $ 190.58 million (both Venezuelan), as well as Avanzia S.A. (Mexico), which will invest $ 322.68 million.
According to state oil company Petroamazonas EP, which will continue to be the operator of the fields, the rates it will pay contractors for their services will be set according to the WTI international oil scoreboard, with an average tariff of $ 18.41 considered for a price of $ 60 per barrel.
Larrea announced that, at the end of this month, the Intracampos bidding round will be announced under the participation modality for exploration and production of 8 oil fields in the Amazon region, which estimated an additional investment of close to $ 1,000 million.
Last February, contracts were signed for minor oil fields (those whose production is less than 5,000 barrels per day of oil) that are located in Sucumbíos and Orellana, with which it expects an investment of around $ 700 million.
Larrea added that the country is deficit of natural gas so in the coming days will move, along with Galárraga to Peru, in the search for agreements to import it.
In addition, the authorities indicated that the possibility of Ecuador’s operations in gas fields in Peru is being analyzed.
With regard to subsidies for fuels, Larrea mentioned that this decision belongs to the Ministry of Economy, since they provided information, for example, on the costs they represent.
3,000
millions of dollars
is what is estimated as the cost of subsidies for 2018, said Deputy Minister Patricio Larrea. (I)
