Petroecuador to award 2 drilling contracts in one month

Ecuador's state oil company Petroecuador expects to award two integrated one-year drilling services contracts in about one month, a Petroecuador spokesperson told BNamericas. "In the worst case, we estimate one month, but we hope it will be before, because the sooner the better," the spokesperson said. Six companies bid on the contracts to drill 21 exploration and production wells in Petroecuador's Amazon fields, Petroecuador said in a statement. Petroecuador will take about 10-12 days to review the bids, the state purchasing officer will take another 15 days to approve the contracts and finally Petreoecuador's tenders committee will award the contracts. Drilling could start one month after contracts are awarded, provided the rigs are already in Ecuador, the spokesperson said. Ecuador's Drillfor, China's Sinopec, and US companies Ross Energy, Pride and Hardtrade bid on a contract to drill 12 exploration wells on the Lago Agrio, Shushuqui and Sansahuari fields. Hardtrade, Sinopec and fellow Chinese company CPEB bid on a separate contract to drill 9 exploration and production wells on the Pacay and Cuyabeno fields. Petroecuador hired three companies to provide integrated drilling services in November 2003, but only one of those companies - Sinopec - has started drilling, and is on its third well. Of the other two contracts, the state purchasing officer did not approve a contract with US company Pride because the rig, built before 1980, did not meet the terms of the tender and Hardtrade has not started drilling yet due to delays in bringing the rig from China. Petroecuador plans to fine Hardtrade US$10,000 a day for each day it is late, the spokesperson said, adding the company is already about 15 days behind schedule. However, the Hardtrade rig will be transported from the Esmeraldas port on the Pacific coast to the Shushufindi oil field this week and should start drilling during the first week of June, the spokesperson said. All of these drilling contracts are designed to help Petroecuador lift is production to 205,000 barrels a day (b/d) by December from about 198,000b/d at present, the spokesperson added.