Snapshot: Ecuador’s top upstream hydrocarbon investors

New figures reveal that hydrocarbons exploration and production spend by private operators in Ecuador exceeded guidance in 2023 as the government targets a near-term, double-digit increase in crude output.

Upstream investment in January-November totaled US$2.07bn, information from the energy and mines ministry and national oil company Petroecuador shows.

The bulk of the outlay came from the NOC, with investment up 1.63% from the same period 2022 to US$1.81bn.

The balance of US$260mn came from 23 private operators, versus a budgeted US$166mn.

Of the US$260mn, service contracts represented US$218mn and participation contracts US$42.3mn, compared to guidance of US$129mn and US$37mn.

“This result is due to the increase in investment by the operators, in order to guarantee the proper functioning of the facilities and the correct operation of the fields,” according to the ministry.

PRIVATE OPERATORS

Among the private operators, four groups which hold service contracts accounted for 75% of investment for this type of contract, led by Enap Sipetrol, a subsidiary of Chile’s national oil company Enap.

Enap funds went to blocks MDC (T1 T2) and PBH Inchi, also known as areas 46 and 47, which received US$72mn and US$29.7mn, respectively.

Andes Petroleum Ecuador followed with US$47mn, which went to blocks Tarapoa (62) (US$46.6mn), 83 (US$283,490) and 79 (US$277,984).

Other sizable expenditure came from Petrobell-Grantmining and Pluspetrol Ecuador which put US$25.9mn and US$18.9mn into blocks Tigüino (66) and 10, respectively.

For its part, Consorcio Frontera-Geopark topped spend for groups holding participation contracts.

The consortium invested US$19.4mn in Perico (88) and US$5.68mn at Espejo (92).

Spend by the second highest participation contract holder, Gran Tierra Energy Colombia, reached US$8mn for Charapa (50), US$5mn for Chanangue (51) and US$585,863 for Iguana (89).

Much of the investment went to secondary recovery projects carried out by Petroecuador at areas Auca, Edén Yuturi, Indillana, Lago Agrio, Libertador, Oso-Yuralpa, Sacha, Shushufindi and 16.

Such projects were also carried out by Enap Sipetrol (blocks 46, 47), Andes Petroleum Ecuador (62), Orionoil (54), Petrobell-Grantmining (66), Consorcio Petrosud-Petroriva (Pindo or 65) and PetroOriental (14, 17).

In addition, official numbers reveal that Petroecuador drilled 127 wells in 2023 and private operators 31, versus 116 and 47 a year earlier.

The following tables show investment for other operators.

SERVICE CONTRACTS

Company	Block Name	Block Number	Investment US$
Orionoil	Eno Ron	54	7.58mn
Orion Energy	Ocano Peña Blanca	52	6.65mn
Asociacion Pacifpetrol-Andipetroleos-Santa Elena Oil and Gas	Gustavo Galindo	2	2.53mn
Petrooriental	17	17	2.44mn
Petrooriental	14	14	1.76mn
Consorcio Petrolero Palanda Yuca Sur	Palanda	64	1.37mn
Gente Oil Ecuador	Singue	53	1.14mn
Consorio Petrosud-Petroriva	Pindo	65	539,940

PARTICIPATION CONTRACTS

Company	Block Name	Block Number	Investment US$
Petróleos Sud Americanos del Ecuador	Sahino	90	1.85mn
Petróleos Sud Americanos del Ecuador	Araza Este	91	1.46mn

PRODUCTION

The energy and mines ministry has set an output target of 550,000b/d in 2025, a 16% jump from 475,000b/d recorded in 2023.

Production on March 18 was 487,401b/d, with 396,668b/d from Petroecuador and 90,733b/d from private operators, according to the country’s agency for the regulation and control of energy and non-renewable natural resources (ARCERNNR).

Output last year slid to 173.4Mb from 175.6Mb which the ministry attributes to the suspension of the OCP heavy crude pipeline in February-April due to the rise of the Marker river that impacted operations.

Following a referendum to shutter operations at block 43 (ITT), authorities have pinned hopes on the Intracampos II licensing round to boost activity and development of Suroriente blocks 80, 84, 85, 86 and 87, as well as heavy crude blocks 20 (Pungarayacu) and 29.

Source: Energy and mines ministry (Reserves for the year ended December 31, 2022 are under review)

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