General Manager (s) of EP Petroecuador announces the main action lines for the second half of 2024

Machine translation was used to translate the following Petroecuador release

This June 28, 2024, the General Manager (s) of EP Petroecuador, Diego Guerrero, socialized the three main axes of work that he will develop in his business management, during the coming months, as part of the guidelines of the Government of the President of the Republic, Daniel Noboa Azín and the Minister of Energy and Mines (e), Roberto Luque.

The first is related to stabilizing oil production levels . The objective is to reach, until the end of 2024, 390,000 barrels of oil per day (BPPD). To do this, 19 wells will be drilled in Sacha, Block 60; eight wells in Blocks 12 and 31; three wells in Block 7 and two wells in Pucuna, Block 44. Additionally, 33 wells will be drilled by the consortia that maintain the link of Specific Services contracts with Financing from the contractor. These assets are located in the provinces of Orellana and Sucumbíos.

Likewise, two drills will be incorporated in Blocks 31 and 12 to add barrels of oil. Also, work will be done to increase the production of natural gas from the Amistad Field, Block 6, El Oro, through the implementation of three or four workovers (reconditioning).

“EP Petroecuador's fields have a natural decrease of 23% and on average there should be between 10 and 15 drilling rigs per year to maintain production and now there are five,” reported the General Manager(s).

Approaches are maintained with the companies that operate EP Petroecuador's oil fields under the Specific Services modality, in order to renegotiate contracts to achieve new investments in drilling.

The second axis has to do with the creation of the Corporate Compliance Management , in order to have a strategic vision of the business and empowerment that impacts the strengthening of an anti-corruption, anti-bribery and prevention of money laundering culture. Implementing this compliance unit will prevent illicit activities, fraud, conflicts of interest and any other improper conduct, thus promoting a culture of ethics and transparency, with the support of entities such as: the State Attorney General's Office, Financial and Economic Analysis Unit ( UAFE) and the State Attorney General's Office.

“We have the agreement ready with several of the aforementioned organizations and we are going to create a hotline to report all types of corruption,” said the General Manager (s), Diego Guerrero. At the moment the management is progressing to create this Unit, whose final approval will be authorized by the company's Board of Directors.

The third axis is to complete the merger process between EP Petroecuador and the former Petroamazonas EP for the efficiency of the company . The purpose is to optimize processes that are still pending execution, such as progressive restructuring in areas such as: Exploration and Production, Logistics and Supply, among others; through process automation and application of best business practices in the hydrocarbon sector. The goal is to strengthen the company in its different lines of action with the efficient management of resources, also seeking to equalize the working conditions of the merged workers.

Use of gas associated with oil

Another line of management will be to continue with the progressive extinguishing of traditional burners in Orellana and Sucumbíos and the use of gas associated with oil. For example, new collection projects will be implemented at the Sacha Norte 2, Sacha Central, Drago and Shushufindi Stations. Additionally, the process to capture associated gas from the Cuyabeno Station through private investment will continue, which is in its final phase.

To date, a total of 147 flares have been eliminated and an average of 12.6 million cubic feet of oil-associated gas is processed per day at the Shushufindi Industrial Complex, in Sucumbíos.

Glosses

The General Manager (s), Diego Guerrero indicated that the company was received with a judicial report of 6,000 lawsuits of which, 1,400 are labor lawsuits, with an estimated cost to the State of around USD 800 million. In this case, he reported that a joint work plan is being carried out with the control organizations to mitigate the impact.