Page 12 - LatAmOil Week 03 2022

LatAmOil CHILE LatAmOil

This anticipated shortfall has spurred a great the form of LNG, as well as HPPs, it is facing a
deal of concern in the South American coun- very real risk of not being able to cover domes-
try, which is set to be hit by a drought during tic energy demand. The government hopes to
the coming winter. Low rainfall will prevent the mitigate that risk by helping operators of small-
hydroelectric power plants (HPPs) that usually scale diesel-fired generators secure more feed-
supply most of the country’s electricity from stock than they can in normal years, when they
operating at their full capacity. encounter logistical bottlenecks and pressure to
As such, CEN hopes to cover the gap by sign costly term contracts with fuel distributors.
securing additional supplies of diesel, Argus Following the election victory of Presi-
Media said last week, citing a draft version of a dent-elect Gabriel Boric, Chile’s government
government decree. The grid co-ordinator did is anticipated to step up its emphasis on decar-
not say exactly how much extra fuel might be bonisation and the energy transition. Boric
imported between March and September, but it has pledged to run an “ecological government”
did state that the extra costs of the supply plan that makes green energy a top priority, and his
would be divided up among all generators using administration is expected to expand the coun-
the national grid. try’s solar and wind power base.
Chile currently has sufficient generating Boric recently reflected on his administra-
capacity to cover demand. However, the nation’s tion’s decision to focus more intensely on the
actual electricity supplies may be affected as a environment, explaining: “Environmental sus-
result of decarbonisation campaigns, which tainability goes hand in hand with economic
have served to sideline power generation based sustainability.” Speaking in front of some of
on domestically mined coal since their incep- Chile’s top business and political leaders at the
tion in 2019. The push to phase out coal has Icare conference, he asserted that development
gained momentum in recent years, thereby and sustainability go hand in hand with respect
creating an opening for even more short-term to economic growth. He also laid out his ambi-
electricity supply shortages. tion to transform Chile into an international
As a result, even though Chile has large- leader on the sustainability front, which would
scale thermal power plants (TPPs) that can run include influencing developed countries to join
on imported coal and natural gas imported in in with his own country’s efforts. ™

ECUADOR
New Stratus finalises acquisition

of Blocks 16 and 67 from Repsol

NEW Stratus Energy (Canada) has completed with New Stratus’ net share of the total amount-
its acquisition of minority stakes in two heavy ing to 5,007 bpd. Their gross proven and prob-
crude oil blocks in Ecuador’s eastern Orellana able crude reserves amount to 4.506mn barrels,
province from Repsol (Spain). 1.577mn barrels net to New Stratus.
The Canadian independent announced in a However, the Canadian company has said it
statement dated January 14 that it had wrapped is ready to invest $200mn in Blocks 16 and 67 in
up the transaction on terms “equivalent to 2022-2023 in order to drill 30 new development
those previously disclosed.” It explained that it wells, provided that Ecuadorean authorities
had acquired 100% of Repsol Ecuador, a local approve its request to switch its service con-
subsidiary of Repsol, and had thereby gained tract to a production-sharing contract (PSC). It
indirect 35% working interests in the service has claimed that the drilling of these new wells
contracts issued for Blocks 16 and 67. Repsol might push output rates up to 25,000 bpd.
Ecuador, now a fully-owned subsidiary of New New Stratus did not say in its statement
Stratus, will continue to serve as operator of the whether its ongoing talks with officials in Quito
blocks, it added. on the PSC issue had made any progress. It
Equity in Blocks 16 and 67 is now split 35% noted that it would continue to work under ser-
to operator Repsol Ecuador, owned by New vice contracts that are due to expire at the end
Stratus; 34% to an alliance formed by two state- of 2022.
owned Chinese companies, Sinopec and Sino- If a PSC can be signed and the term of the
chem; and 31% to Taiwan’s national oil company project extended, it commented, the company
(NOC), China Petroleum Corp. (CPC). will commission a new reserve report that
As of January 5, the two licence areas were reflects reserves up until the endpoint of the
yielding a total of 14,306 barrels per day of oil, renegotiated deal. ™

P12 www. NEWSBASE .com Week 03 20•January•2022