Ministry extends 9th round deadline to March 19

Ecuador's energy and mines ministry has extended until March 19 the deadline to receive bids on four blocks making up the country's ninth bidding round, a ministry source told BNamericas. The original deadline was November 21. The ministry has extended the deadline because companies asked for more time to study the offshore blocks in the Gulf of Guayaquil, the source said, adding "there is much more risk on these blocks." The ministry reopened the ninth round in August, after investors stayed away from the first sale attempt in April. The government hopes investors will return now that President Lucio Gutierrez, who took office in January, has settled into his job and taken steps towards revamping the hydrocarbons law to encourage private sector participation. The four blocks to be sold are located in southwest Ecuador: blocks 4 and 5 are onshore in Guayas province; and blocks 39 and 40 are offshore in the Gulf of Guayaquil. According to studies carried out in the 1980s, the four blocks could have combined estimated reserves of at least 270 million barrels (mb) of light crude. Meanwhile, the ministry has increased the estimated reserves in a separate tender to boost production on four of state oil company Petroecuador's blocks to 904.5mb, the source said. The ministry increased the reserves from the original 870mb after including in the tender the Puma field located in the Auca block, the source said. Apart from Auca, the other blocks on offer are Culebra-Yulebra, Lago Agrio and Shushufindi. Bids are due January 23. The winning bidder will be decided on a points system with participation to the state worth 60%, investment 30%, and other factors 10%. The ministry has announced three other incentives to make the tender more attractive, including reducing the rate companies pay to transport crude on the Sote pipeline and allowing companies to re-inject gas produced on the fields to produce more crude or generate electricity. "Like any good businessman, we have to attract customers," the source said.