Page 11 - LatAmOil Week 46 2021

LatAmOil ECUADOR LatAmOil

Lasso has also said he hopes that projects in a buyer for one of the country’s largest oilfields
energy, mining and other sectors will attract – Sacha, which is capable of producing around
$30bn of new investment in the next four years. 65,400 bpd.
Some of the projects in question target the It has also said it intends to launch a licensing
upstream sector of the oil and gas industry. For round that will cover a number of fields in the
example, Lasso’s government is already seeking south-eastern part of the country. ™

Quito will not block New Stratus from

buying stakes in two blocks from Repsol

ECUADOR’S government has signalled that it said that New Stratus was prepared to invest
does not intend to block New Stratus Energy, an $200mn in Blocks 16 and 67 over a period of
independent Canadian company, from acquir- two years.
ing minority stakes in two heavy crude oil blocks Additionally, he stated that the company
from Repsol (Spain). wanted to change the terms of the contracts
According to Energy Minister Juan Carlos covering the two blocks. Repsol has been work-
Bermeo, Quito has given the Canadian com- ing there under service contracts that are due
pany the green light for the deal. Speaking to to expire in December 2022, he noted, but New
the press on November 18, he said: “In order for Stratus would prefer to operate under produc-
them to continue with [the] negotiations and tion-sharing contracts (PSCs) and to extend the
sale processes, they need authorisation from us term of the contracts by 15 years.
... We have given that authorisation.” Blocks 16 and 67 are currently producing
Bermeo had said last month that his minis- around 13,000 barrels per day (bpd) of heavy
try was still assessing New Stratus’ request for crude oil with a specific gravity of 15 degrees
permission to buy 35% stakes in Blocks 16 and API. New Stratus has said it hopes to push yields
67, both of which are located in Ecuador’s east- up to 25,000 bpd after drilling 30 new wells in
ern Orellana Province. Under Ecuador’s current 2022 and 2023.
legal regime, he explained to Argus Media, the Equity in Blocks 16 and 67 is currently split
sale cannot proceed without the approval of the 35% to Repsol, the operator; 34% to an alliance
Energy Ministry. formed by two state-owned Chinese companies,
New Stratus’ José Francisco Arata unveiled Sinopec and Sinochem; and 31% to Taiwan’s
his company’s plan to acquire stakes in the two national oil company (NOC), China Petroleum
blocks from Repsol last month. At the time, he Corp. (CPC). ™

Block 16 is in Ecuador’s Orellana province (Image: Repsol)

Week 46 18•November•2021 www. NEWSBASE .com P11