The National Government managed an additional investment of USD 52 million in Block 64 – Palanda Yuca Sur

The following is a machine translation of a Ministry of Energy and Mines release

This Thursday, the Vice Minister of Hydrocarbons, Cristina Mogollón, and the General Manager of the operating company Petróleos Sud Americanos Del Ecuador Petrolamerec SA (PCR Ecuador), signed the contract to modify Block 64 – Palanda Yuca Sur, located in the province of Orellana, which allows new hydrocarbon investment for around USD 52.5 million.

The contract negotiation, under the Services Provision modality, contemplated the extension of the term until 2037 and the unification of the rate, which was set at 39 dollars per barrel of crude oil, which will optimize the payment settlement processes, given that in the original contract dating from 2011, different rates had been established for the two fields of Block 64, Palanda and Sami.

The contractor's investment will focus on the development of oil wells, process improvement, innovation in its own power generation, upgrading of oil pipelines, pipes and other activities to increase production.

In this regard, the Vice Minister of Hydrocarbons, Cristina Mogollón, highlighted the negotiation of oil contracts with private operators. “The signing of this modified contract is part of the objectives of the National Government to increase oil reserves, sustain national crude oil production and enhance benefits to the communities of influence,” she indicated.

The Government of El Nuevo Ecuador promotes strategic actions to achieve the objectives set out in the National Development Plan, through the strengthening of activities in the oil sector, in a sustainable manner and with an environmental and social focus.