The IESS and derivatives raise spending on subsidies for the State

Ecuadornews:

Petroamazonas started drilling activities in the Drago and Parahuacu fields on Tuesday, October 30 and Thursday, November 1, in their order. Both fields, located in Sucumbíos, were tendered in the Round of Small Fields in which an investment of $ 696.1 million is foreseen during the first three years of the contracts.

According to a communication from Petroamazonas, the DRRD 045 well is the first of 34 wells that will be drilled in Campo Drago during the next two years. An estimated initial production of 700 barrels per day of oil is expected.

The drilling of this well will take around 24 days and will be in charge of the Venezuelan company Cóndor Servicios Petroleros.

Meanwhile, in Campo Parahuacu, it is expected to drill 25 wells in the 2018-2020 period. The drilling of the first well will take around 25 days and will be carried out by the Chinese company CNPC (Chuanqing Drilling Engineering Company Limited).

The services provided by the contractor in the Drago and Parahuacu fields will be canceled by Petroamazonas, with an average tariff of $ 17,46, considering a WTI price of $ 60 per barrel.

The Ronda de Campos Menor is made up of the Drago, Guanta-Dureno, Parahuacu and Paka Norte fields, located in the provinces of Orellana and Sucumbíos.

The Minor Fields contracts that were signed in February of this year are under the figure of “Contract for the provision of specific services integrated with financing”. The contractor performs drilling and completion of wells, reactivation of closed wells; and, construction and extension of facilities.

At the moment, 126 local people have been hired and about 22 individual and integrated services such as cementing, well stimulation, drill services, among others, were reported.

77 million barrels for ten years would be the incremental production of smaller fields. (I)

Source: https://www.elcomercio.com/actualidad/iess-derivados-elevan-gasto-subsidios.html