QUITO – State-owned oil company Petroamazonas said it signed a contract with Ecuaservoil S.A., a consortium formed by Ecuador’s Edinpetrol and Belarus’s Belorusnef, to boost production at the Armadillo field in Napo province.
The contract calls for total investment of $146.07 million over the next five years, with some $142 million going into production optimization and $4 million being channeled into oil recovery systems, Petroamazonas said in a statement.
The five-year contract requires the government to “only pay the contractor the value agreed to per barrel of incremental production over the base curve established in the negotiating phase,” Petroamazonas said.
The Armadillo field began producing petroleum in 1997 and was closed in 1999, with production hitting 409 barrels per day (bpd) at the end.
Petroamazonas took over the field in 2012 and production has been at nearly 330 bpd since May 2014.
The contract with Ecuaservoil continues a strategy started last October, when Petroamazonas entered into contracts covering production optimization at 17 mature fields.
The contracts with five consortiums totaled $2.12 billion in investment.
The 17 mature fields, whose production was declining, are expected to boost output by 170 million barrels of crude.
The government is not investing any money or assuming any risks in the mature fields, but it stands to earn $2.5 billion, officials said.
The contracts granted in October went to oil field services giant Schlumberger; Argentina’s Tecpetrol; Halliburton Latin America; the consortium formed by China’s Sinopec International and Sinopec Services; and Ecador’s Sertecpet and Colombia’s Montecz and Edinpetrol received the contracts.