Renegotiation of Block 46-MDC ensures an investment of USD 90 million for the country

Machine translation was used to publish the following Ministry of Energy and Mines release

The additional investment of USD 90 million until 2035 is one of the main commitments established, after the signing of the modifying contract No. 6, on the negotiation of block 46 Mauro Dávalos Cordero (MDC), located in the province of Orellana.

The signing of this contractual document took place, on July 15, 2024, between the Ministry of Energy and Mines; and the company ENAP SIPEC, a private company of Chilean origin that currently operates the block.

The Minister of Energy and Mines, Antonio Goncalves, highlighted that the signing of the contract is a sign of the interest that the National Government has in promoting the country's hydrocarbon sector.

“With this signing, reserves will be increased by 5.6 million barrels of crude oil. It is important to highlight that 98% of the new investments, committed by the operator, will be made during the first five years after signing the documentation. We will continue to promote an industry that is responsible for communities and sustainable for the environment,” said Minister Goncalves.

As part of the proposals presented by the contractor, additional activities are contemplated such as:

– 8 wells on advanced platforms.

– 2 injector wells.

– 2 conversions to injection wells.

– Facilities: Process improvements, electricity generation, repowering of oil pipelines, flow lines, among others.

For his part, the General Manager of ENAP Ecuador, Juan Cuervo, stated that, with the signing of this modifying contract there will be an increase in oil production. “We have many more investments in our portfolio to make in the country, with the intention of maintaining a sustainable and responsible industry in all areas,” he added.

This agreement highlights the increase in the hiring of local labor, productive development, execution of infrastructure and community services, to generate a direct impact on the strengthening of the territories.

The subscription of the minutes was approved during session no. 076 of the Hydrocarbon Bidding Committee (COLH). The signing of this amending contract is the result of the negotiation for increased production and new investments , to the current contract for the provision of services.