QUITO – Ecuadorian authorities and representatives of Chilean and Belarusian oil companies on Thursday signed two contracts that entail a combined initial investment outlay of roughly $100 million, the Coordinating Ministry for Strategic Sectors said.
The companies could invest an additional $385 million depending on the results of the first stage of operations, the ministry said in a statement.
The first contract covers Block 28 in the southeastern Ecuadorian jungle province of Pastaza, an area awarded to a consortium made up of Ecuadorian state oil company Petroamazonas EP (51 percent stake); ENAP Sipetrol (42 percent), a unit of Chilean state-owned oil company ENAP; and Belarus’s Belorusneft (7 percent), the statement said.
The cost of exploring and developing the block, which is projected to contain between 30-50 million barrels of crude, is estimated to be $400 million: $25 million for exploration and $375 million for development.
The other deal, signed with ENAP Sipetrol, modifies an existing services contract for the exploration and development of the PBHI block (Block 47), according to the ministry.
The new agreement calls for the Chilean-owned company to invest $82 million to drill two additional production wells and build surface installations (a platform, an interconnection line and a power generation system) and a pipeline, the ministry said.