Off the wire
• Immigration, competition driving record New Zealand new car sales  • Roundup: Vietnam reports first cases of Zika virus infection  • Indian stocks open flat  • Interview: Sri Lanka seeks closer trade, economic ties with China, says PM  • Myanmar parliament passes proposal of appointment of attorney-general, auditor-general  • Myanmar parliament approves 2 portfolios to substitute part of Aung San Suu Kyi's  • Bus maker Zhengzhou Yutong posts 35-pct profit growth  • Mexico reports 201 confirmed Zika cases  • Bid to oust president lacks legal basis: Brazil's attorney general  • State Council appoints head of HK's immigration department  
You are here: 　 Home

Ecuadorian company inks oil exploration deals with foreign firms

Xinhua, April 5, 2016 Adjust font size:

Ecuador's government-owned Petroamazonas signed nine service contracts on Monday with international consortiums in efforts to develop its mature oil fields.

The committed investments totalled around 1 billion U.S. dollars in development plans for incremental reserves, which requires more advanced technology for extraction.

Ecuador's Vice President Jorge Glas and Petroamazonas authorities signed the contracts with representatives from the consortiums at a ceremony in Quito, the Ecuadorian capital city.

"These contracts represent a very important step in our management because they will start up projects that are really necessary to extend the life of mature oil fields," said Petroamazonas manager Jose Icaza.

Panaturi Consortium, made up of China's Sinopec International and Sinopec Service Ecuador, will be in charge of the Indillana, Yanaquincha and Limoncocha oil fields.

The Kamana Consortium of France's Schlumberger and Argentina's Tecpetrol will work on the Eden, Yuturi and Panacocha oil fields,respectively.

The Igapo Consortium and the U.S. company Halliburton will operate on the Lago Agrio, Palo Azul, Pucuna and Victor Hugo Ruales oil fields.

According to the contracts, the companies assume the risk of the investments. Payment rates for the contractors will be calculated based on the international marker West Texas Intermediate (WTI), a benchmark in oil pricing, said Ecuador's government.

"We have achieved beneficial conditions, which includes, among other things, ensuring the state's financial protection during periods of low oil prices," said Icaza.

With the contracts, the government seeks to increase oil production in the mature oil fields which ars experiencing a decline in production. It hoped production will increase by around 30,000 barrels per day by 2018.

As one of the country's major export items, oil contributes an important part of Ecuador's revenues.

Since 2015, Ecuador, one of the members of the Organization of the Petroleum Exporting Countries (OPEC), has faced difficulties due to falls in oil prices. Endi