Ecuador prepares bidding round for two oil blocks

New Stratus Energy

11/07/2023 17:33

By Alexandra Valencia
       QUITO, July 11 (Reuters) - Ecuador is preparing a
bidding round for two oil blocks that temporarily passed into
the hands of state oil company Petroecuador to allow a private
operator to make investments and increase production, the energy
ministry said on Tuesday.
    Blocks 16 and 67, which are located in Orellana province, in
Ecuador's Amazon, were returned to Ecuador by a subsidiary of
Canada's New Stratus Energy  NSE.V , after the contracts expired
on Dec. 31 and conservative President Guillermo Lasso refused to
negotiate an extension. 
     Petroecuador assumed operation of both blocks on Jan. 1. 
     Though the blocks can produce up to 15,000 barrels per day
(bpd) they are currently producing around 10,000 bpd, according
to the energy ministry.
     "The area is very promising," the ministry said in a
statement. "With investments and technology, at the expense and
risk of the contractor, incremental production is expected."
     The ministry did not provide details about the bidding
round but said it was finalizing details.
     The announcement comes as the country prepares for early
presidential and legislative elections on Aug. 20, after Lasso
dissolved the National Assembly and shortened his term to avoid
possible impeachment.     
    Ecuador produced some 478,000 bpd on Monday, mostly via
Petroecuador, as well as a from private companies, according to
official data.
    

 (Reporting by Alexandra Valencia 
Writing by Oliver Griffin; Editing by Sharon Singleton)
 ((Oliver.Griffin@thomsonreuters.com; +57 304-583-8931;))