Ecuador’s state-owned oil company, Petroamazonas, has signed service contracts worth $1.62 million for the development of six onshore oilfields in the Orellana, Napo and Sucumbios provinces, Kallanish Energy reports.
The country’s energy ministry said last week the state company will see private-sector investments of $727 million in the Cuyabeno, Sansahuari, Oso, Yuralpa, Blanca and Vinita fields.
The integrated services contract covers drilling and completion of wells, as well as construction and expansion of facilities. The investments should add some 77.29 million barrels of crude in a 10-year period.
Petroamazonas will pay the contractors a fee of roughly $18.41 per barrel, based on WTI of $60/Bbl. The contractors are Wayraenergy (a Venezuelan consortium formed by Vinccler and Arotekh), Ecuador’s Triboilgas and Mexico’s Cuyabenopetro.
The Ecuadorian producer also managed to renegotiate terms of oilfield services contracts signed in 2012 with the Shushufindi and Pardeliservices consortia. This will enable investments of $895 million for development of two fields in the Sucumbios Province.
“The changes will ensure greater benefits for the state, since they achieve tariff reductions and transfer the risk of investments to the contractor,” the ministry said, adding the services are indexed to the West Texas Intermediate price marker of $60/Bbl.
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