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Saving reaches $ 290 million for new oil rates
Posted On 13 Aug 2018
Ecuadornews:
The State has saved about $ 290 million since October 2017, which renegotiated the rates with the service providers of Petroamazonas EP until June 2018. This was reported by the manager of the state company, Álex Galárraga.
The renegotiation was made in four segments: with the Shushufindi Consortium (Schlumberger) – at the time they have saved $ 98 million – Pardaliservices has stopped paying $ 18 million – and in 16 mature fields – saving $ 174 million -, according to the official. As for the smaller fields, it was already possible to have “reasonable rates of $ 14.03”. He anticipates that on August 15 contracts will be signed with the companies that won in the Oil & Gas round and ensures that the rates in these cases are also in the range of those of the smaller fields.
How was this rate reduction achieved, how did the oil companies accept?
The manager of Petroamazonas says that there were strenuous negotiations and friction with the companies, but the State’s policy was to align with international costs. They were technical and economic arguments, because with the previous contract was breaking the economic balance of the State. “If in the contract they said that the State participated with 95% of the income, and then with the low that percentage fell to 50% or 40% and even came to a negative, the conditions of the contract had to change,” he says.
For example, Shushufindi in 2017 billed from $ 34 million to $ 35 million each month and now the payment is between $ 20 million and $ 21 million.
As for the 18 mature fields, seven contracts were withdrawn that did not create value for the State and remained in 11. Currently those fields that work under the modality of tariffs are Eden Yuturi and Pañacocha with the company Kamana; Lago Agrio, Palo Azul VHR and Pucuna with Igapó; Indillana, Limoncocha, Yanaquincha, with Pañaturi; Pacoa with the company Santa Elena and Armadillo with Ecuaservoil.
When recalling the conditions in which the contracts were signed with the companies, he considers that “it was crazy” to have stated so much in the contract with Shushufindi and with Pardaliservices that the price of crude would be $ 100 per barrel. “They thought I was never going to go down” (the price). In addition, it was suggested that in both cases, the State’s participation would be 95% and 5% for the company.
Luis Calero, an oil expert, explains that it is important that the new rate renegotiation contracts be published in order to know in which subjects the companies gave way, and under what conditions the State ceded. Otherwise, he says, it is not understood why they have gone down, it could be interpreted as having usurious rates that were not justified. They could also have established that investments be reduced, they say.
It is still pending that the Government publish the renegotiated contracts with Petrochina, Petrotailandia and Unipec.
According to Galárraga, the lack of transfers from the Ministry of Finance, due to the fall in oil, resulted in the generation of a cumulative deficit of $ 3,597 million in 2016, which fell to $ 3,146 million in 2017. It specifies that there is currently a debt of $ 2,865 million, of which the main amounts are $ 1,370 million of provisions, about $ 1,000 million of bonds that must be canceled in the coming years. “The Petroamazonas situation is already stable, but we have to take care of it for the next five years,” he says.
The budget of the company fell from 2015 from $ 4,734 million to $ 2,672 million making cuts in leases and other issues, where it considers that there was an excess of expenses. But they maintain the production: 416,000 barrels per day and the new drilling in Sacha has just started, which is expected to rise from 67,000 to 70,000 barrels per day. (I)
