Community ‘problems’ holding up Ecuador’s US$20bn Suroriente oil build-out

Different development alternatives are under review for Ecuador’s plan to tap the hydrocarbons potential of Suroriente upstream acreage in the Amazon.

The update was provided during a local energy event by deputy hydrocarbons minister María Mogollón, who said, however, “unfortunately, we have some little problems with the communities.”

Efforts to offer blocks in the area have been stymied for years by opposition from indigenous groups, such as Confenaie.

The government looks to grant 24-year participation contracts with estimated capex of US$20bn and forecast peak output of 300,000b/d, according to Mogollón, who added that there is no production in the areas.

The hydrocarbons tender committee must approve the process and a request for authorization is penciled in to be submitted by mid-2026.

The acreage spans the provinces of Pastaza and Morona Santiago, home to blocks 80, 81, 82, 84, 85, 86 and 87, among others.

The official also updated the status of other planned acreage offerings, such as the Amistad field (block 6), the country's only offshore producing area.

She said the energy and mines ministry is working with national oil company Petroecuador on the business model and technical information to offer a 24-year participation contract.

The goal is to increase natural gas production to 88Mf3/d from 21Mf3/d. Estimated capex is US$1.2bn.

The pipeline also includes 24-year participation contracts for the optimization of marginal producing blocks with 14 under evaluation with Petroecuador. 

The goal is to increase oil output to 62,000b/d from 20,000b/d. Estimated capex is US$8bn.

And the ministry is working with an international consultancy firm to define technical information on offshore blocks, for which 24-year participation contracts would be offered.

Estimated production would be 330,000b/d and capex is put at US$12bn.

An upstream acreage map for Ecuador is available here.