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The Government aims to obtain $ 1 billion through the rehabilitation of oilfields
Posted On 20 Jun 2017
Ecuadornews:
The government aims to extract 1,000 million dollars from the wells, that is to say from 15 smaller fields that will be leased to private companies, the Ministry of Hydrocarbons reported. This benefit is translated into an increase of about 25,000 barrels of oil per day, at its peak of production; in two and a half years. The contracts will be of variable tariffs and “the interests of the Ecuadorian State will always be protected.”
What worries most experts is that the government leases old fields and not new ones. Although this should make the offer attractive to investors, it may not be that way, said Santiago Bucaram, director of the Institute of Economics at the Universidad San Francisco de Quito. He explained that receiving a low price for the exploitation is not profitable and in that case, it is possible that they prefer, for example, US fields.
For Bucaram, the price of a barrel of oil plays a very important role in this negotiation, as being of a variable rate; And we must take into account that there is no indication that the barrel of crude will cost more than $ 60 in the short term. It is now below $ 50. Something that would imply that Ecuador pays less than what foreign private companies are used to receiving, more than $ 30 per barrel, said Bucaram.
However, the Ministry of Hydrocarbons emphasized that providing the fields to private investors is a benefit for the country because smaller fields still have development areas and feature greater conditions of technical and economic risk, thus, investment is needed. (I)
Source: http://www.expreso.ec/economia/el-gobierno-aspira-a-1-000-millones-al-ceder-los-campos-LY1472962
