Ecuador will start oil exploration works

The country signed agreements for 1.17 billion dollars for oil exploration in the province of Sucumbíos jointly with local, Colombian and Peruvian companies

The president of Ecuador, Lenin Moreno, announced changes in its economic and financial policy to attract investors and recover lost time for their development. One important step was the launching of Executive Decree 399, which ordered the merger of the Ministry of Electricity and Renewable Energy, the Ministry of Mining and the Ministry of Hydrocarbons in the Ministry of Hydrocarbons to be renamed Ministry of Energy and Natural Non-renewable Resources.

In relation to this new ministry, the country has just signed contracts for the order of US $ 1,170 million with local companies from Colombia and Peru in order to start oil exploration in the Amazonian province of Sucumbíos.

The company Petrolamerec from Ecuador obtained the award for the Arazá Este and Sahino blocks. Also, Gran Tierra Energy from Colombia will take charge of Chanangue, Charapa and Iguana. The Perico and Espejo fields will be controlled by the consortium formed by Colombian company Frontera Energy and the Peruvian Geopark Perú.

Enrique Villalobos, representative of the company Gran Tierra Energy, explained that the exploration phase stipulated in the contracts will be for a period of four years “with the hope of finding oil and gas and move to the development stage for another 20 years.”

On the other hand, the contractors involved in the negotiation are obliged to assume 100% of the investment in the hydrocarbon exploration of the blocks awarded in the so-called intra-market rounds.

Ecuador maintains a production index of 529,000 barrels per day of crude oil. “It is estimated that by the year 2024, the Intracampos will contribute about 18,000 barrels per day to national production,” according to a statement from the Ministry of Energy and Natural Resources, not Renewable.

M.Pino

Source: Bancaynegocios

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