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“This asset divestment process is part of regular Eventually, they may be capable of yielding
portfolio rotation activities and is aligned with more than 3,000 barrels of oil equivalent per day
the principles of the Ecopetrol Group’s strategy: (boepd).
strict capital discipline, cash protection, cost Felipe Bayón Pardo, Ecopetrol’s CEO, com-
efficiency and profitable growth,” it said. mented: “This Ronda offers other sector com-
The sites involved in the auctions are believed panies access to assets with production and
to hold some 17mn barrels of oil equivalent reserves development opportunities, and their
(boe) in 3P reserves, including 11mn boe in investments will generate employment and con-
proven reserves. They may also contain 13mn tribute towards reactivating the sector as well as
boe in contingent resource development oppor- the regional and national economies. We there-
tunities, as well as another 35mn boe in pro- fore invite the industry in general to actively par-
jected exploration potential. ticipate in this process.” ™

ECUADOR
Ecuador lets private firms import, sell fuels

THE government of Ecuador has unveiled a competition.
market-oriented reform programme that will In line with this strategy, the government
allow privately owned companies to import and will merge Petroecuador with Petroamazonas,
sell some fuels. another state-owned company. It is also on the
The measure, which effectively ends state- lookout for a partner to facilitate the upgrade of
run Petroecuador’s monopoly over the sector, Petroecuador’s Esmeraldas refinery. The Esmer-
states that private firms will be allowed to sell aldas facility, with a capacity of 110,000 barrels
petroleum products for both industrial and per day, is the largest of oil-processing plants in
commercial use, the Ministry of Energy and Ecuador, ahead of the 45,000 bpd La Libertad
Non-Renewable Natural Resources said. It will facility and the 20,000 bpd Shushufindi facility.
not affect sales of LPG designated for use in These three refineries do not produce enough
homes, automobiles or the agricultural sector. fuel to cover Ecuador’s domestic demand. Petro-
Rene Ortiz, the head of the ministry, said ecuador has said it wants to build a fourth plant,
that the new policy would help reduce budget the Pacific Refinery, in the western province
expenses. “[A] private company putting up the of Manabi, but the project has stalled. If built,
money to import a product means the state can the refinery will have a throughput capacity of
reduce the money it needs to have on hand to 300,000 bpd, large enough to satisfy domestic
bring these products,” he was quoted as saying gasoline demand while also enabling exports to
by Reuters. neighbouring countries and Asia.
Ortiz also noted that private firms would Equity in the Pacific Refinery project is split
have to pay a fee to Petroecuador to use its ports. 51% to Petroecuador and 49% to the Venezue-
Ecuador’s government depends heavily on lan state-run oil company PdVSA. China has
oil revenues, as crude is the country’s biggest pledged to finance part of the project, which was
export. The administration of the country’s cur- originally slated for completion in 2016. How-
rent president, Lenin Moreno, has been imple- ever, PdVSA’s involvement and US sanctions
menting a series of free-market reforms aimed have left the government struggling to attract
at opening up the oil and gas sector to greater sufficient investment. ™

The new policy will not affect sales of LPG for homes, automobiles or the farm sector (Photo: Ecuador Times)

P14 www. NEWSBASE .com Week 39 01•October•2020