EP Petroecuador seeks to double its oil production in five years

This is a machine translation of the Petroecuador release originally published in Spanish.

In the next five years, EP Petroecuador will seek to double its oil production from 400,000 barrels of oil equivalent per day to 800,000 barrels, through joint operations through consortiums in association with private companies that invest their capital and technology in the company's oil fields in the Amazon and coastal regions. This was announced on March 10, by the CEO of EP Petroecuador, Ítalo Cedeño, during a conversation with businessmen in Quito, where he presented the challenges and opportunities of the state oil company and the strategies that should be implemented in the short, medium and long term. throughout the value chain.

The CEO of EP Petroecuador pointed out that eight main components have been identified in this strategic plan, the first five related to exploration and production on issues such as: increased production; the incorporation of associated gas and liquids to production; evaluation and development of the mega blocks: Central East (Blocks 43, 31 and 16), Central West (Pungarayacu) and Costafuera (Amistad). The remaining three are focused on the industrialization of the Esmeraldas refinery, the conversion of the La Libertad and Monteverde refineries into the 'international mega hydrocarbon storage center, asphalt, natural gas and fertilizer production' and finally, the development of the systems NGV Lago Agrio – Coca and Machala – Guayaquil. For example, in the case of Amistad, he said that six prospects have been identified, with a potential of trillions of cubic feet of natural gas and that by delegating its operation to a private company, its development can be promoted to reduce the importation of natural gas, considering that Ecuador currently has a deficit of this hydrocarbon, due to the lack of investment to explore and drill in the gulf.

Along the same lines, he stated that in order to comply with these projects, within the foreseen deadlines, it is necessary to have private capital and adequate regulations to provide legal certainty to those who seek to invest in the hydrocarbon sector. “Approximately 45,000,000,000 barrels are on site and only 14% is produced, a figure that is evidence that resources are not used properly. More than an oil company, we are about hydrocarbons and we are going to incorporate associated gas and liquids into production, since an oil country must account for the equivalent barrels of oil that come from gas to take advantage of these resources and make the company more efficient,” he explained.

It is important to point out that the approximate total investment to achieve the plan to double oil production would be US$12 billion. However, once the delegations to the private sector are specified, it will have to evaluate the real capital destined for each project.

It is expected that by the end of 2022, EP Petroecuador will close with an average production of 495,000 barrels of oil equivalent per day, as a result of the drilling campaigns planned for this year and other actions aimed at meeting the goals set by this business administration.

EP Petroecuador currently produces about 400,000 barrels of oil per day, which is equivalent to 80% of the national crude oil production.