Ecuador's state-run oil company Petroecuador on June 9 launched an auction for private companies to bid for a flagship offshore natural gas field, aiming at increasing the Andean country's production.
Petrocuador is looking for a partner for exploring and developing the Amistad natural gas field, at the nation's Guayaquil Gulf, currently producing 24 million cubic feet per day (mmcfd). The state firm has in recent years planned to call for partners for the key area, but the alliances have not been ultimately signed.
Petroecuador "seeks to increase production at the Amistad field and maximize the recovery factor of its deposits in the block," the company said in a release.
According to Petroecuador's manager, Italo Cedeno, the company's goal is to reach 100 mmcfd of gas production at Amistad, which will require an investment of some $500 million, he said earlier this week.
The natural gas is expected to be used for transportation, power generation or for producing fertilizers including urea, which it currently imported.
As part of the auction's first phase, Petroecuador expects to receive letters of interest from companies on June 13-24. Information will be provided by the state company to firms preparing offers.
Petroecuador is separately preparing a bidding process, to be launched in the coming days, to add a high conversion unit to its largest oil refinery, the 110,000-barrel-per-day Esmeraldas. Investment required for the project has been initially estimated at some $2.7 billion, Cedeno added.
Recommended Reading
Jefferies: With Permian Locked Up, E&Ps Hunt for New L48 Runway
2024-11-26 - With the core of the Permian Basin largely locked up, “intrepid operators” are hunting for runway in more nascent Lower 48 basins and in less developed Permian benches.
Shale Outlook Uinta: Horizontal Boom to Continue in 2025
2025-01-11 - After two large-scale transactions by SM Energy and Ovintiv, the Uinta Basin is ready for development—and stacked pay exploration.
Permian to Drive Output Growth as Other Basins Flatten, Decline–EIA
2025-01-14 - Lower 48 oil production from outside the Permian Basin—namely, the Bakken and Eagle Ford shales—is expected to flatten and decline in coming years, per new EIA forecasts.
'A Renewed Look': Central Basin Platform's Old Rock Gains New Interest
2024-10-29 - As majors prune their portfolios to sell non-core assets, M&A activity is heating up on the Permian’s Central Basin Platform and Northwest Shelf—and Ring Energy hopes to be a buyer.
Shale Outlook Eagle Ford: Sustaining the Long Plateau in South Texas
2025-01-08 - The Eagle Ford lacks the growth profile of the Permian Basin, but thoughtful M&A and refrac projects are extending operator inventories.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.