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The Chinese firm Cerg negotiates a contract for the Sacha oil field
Posted On 17 Nov 2016
The government expects to close a contract with the Chinese company Cerg for the Sacha field until Friday, confirmed Minister of Strategic Sectors Augusto Espin.
The official said that the government is “on the verge of closing that contract.” The government had announced a few months ago that it was looking for a private company to intervene in the Sacha field, the country’s most important state oil field.
Last February, the then Minister of Strategic Sectors, Rafael Poveda, had announced that Sacha was looking for a similar contract to that signed in December 2015 with the company Schlumberger, which took over the Auca field. The agreement signed with Schlumberger is for specific services and states that the awarding firm commits to intervene in the area for a particular time in exchange for a fee per barrel.
The French firm will invest USD 4.9 billion over 20 years in exchange for a rate of USD 26 per barrel. But also, the company gave USD 1 billion in cash to the State as part of the contract. Espin declined to provide details of the agreement negotiated with Cerg because the deal is not yet closed but said that the amount sought is in the order of USD 1.5 billion in cash.
Source: http://www.elcomercio.
