Ecuador hopes for private investment to boost oil output to 600,000 bpd -minister (updated)
21/11/2022 17:00
(Adds details, background and more comments from minister)
By Alexandra Valencia
BOGOTA, Nov 21 (Reuters) - Ecuador is looking to attract
foreign investment in key oil blocks ITT and Sacha in a bid to
boost the country's total oil output to 600,000 barrels per day
by 2025 from less 500,000 currently, the country's energy
minister Fernando Santos said on Monday.
The plan would allow private companies to help state-run oil
firm Petroecuador up output via service provision contracts,
Santos told Reuters in an interview.
"If we achieve foreign investment at ITT and Sacha we
could get to 600,000 barrels per day at the end of the
administration of President (Guillermo) Lasso," Santos said. "If
we manage to attract prestigious companies for these two camps
production will increase, if not it will stagnate where it is."
Ecuador's current production hovers around 490,000 bpd.
Together ITT and Sacha produced close to 118,000 bpd on Friday,
according to official figures.
Lasso pledged to increase output to 1 million bpd when
he took office in May 2021, but that goal has been revised
repeatedly due to problems for the sector.
Petroecuador will take a decision about the two camps in
the first few days of 2023, Santos said.
Production could rise by 30,000 bpd in 2023 if
environmental permissions are given to operate four new
perforation platforms at the Ishpingo field, part of ITT, Santos
said.
"If we don't get the permissions I'll be honest, we
won't meet the goal," he said.
Negotiations with Petrolia, a subsidiary of Canada's New
Stratus Energy, are ongoing, Santos said, a bid to reach a deal
to avoid the return of two blocks to the state.
Petrolia has asked to extend the contracts, changing one
to give the company a participatory role, but authorities have
said the request came after the time stipulated by law.
"If we reach a deal in time it would stop the
reversion," Santos said, adding otherwise the contracts will
expire on Dec. 31.
(Reporting by Alexandra Valencia
Writing by Julia Symmes Cobb; Editing by David Gregorio)
((julia.cobb@thomsonreuters.com; +57-316-389-7187;))