Inspenet, August 13, 2023.
On August 9, Petroecuador formalized the initiation of the bidding procedure aimed at attracting a private entity that makes investments with the purpose of increasing the production of natural gas in the Amistad gas field, which is located in Block 6 and is located in the province of El Oro.
Petroecuador’s bidding process
The tender will be carried out under the contractual modality called Specific Integrated Services with Financing , which establishes an association between the state oil entity and the company or consortium that is awarded, for a period of 15 years.
In simpler terms, the selected private company will assume investments aimed at expanding the production of natural gas and, in return, will receive a fee from the State for the services provided.
Investments of more than $173 million are expected to be attracted, which will cover various areas such as the drilling of new wells, the optimization of existing wells and the construction of facilities.
According to the established plan, the Datapack registration and delivery process is expected to last until August 18; field visits will take place from August 21 to 23; the first envelope will be received on September 29 and the second envelope on October 11; the award is scheduled for October 24 and, finally, the signing of the contract is expected in the first weeks of November of this year.
The General Director of Petroecuador, Ramón Correa Vivanco, announced that through this private investment the goal is to increase the production of gas extracted from Campo Amistad, complying with current legal regulations and, in this way, generating economic benefits for the country.
“The Ecuadorian State will guarantee responsible management of this project, in addition to legal security for investors. It is important to point out that the increase in the production of Campo Amistad will allow us to satisfy part of the demand for natural gas that Ecuador currently has”, he indicated.
About the Amistad Gas Field
The Amistad Field is a natural gas producer that has certified 2P (proven plus probable) reserves of 167.3 trillion cubic feet of natural gas, as well as prospective resources amounting to 241 trillion cubic feet.
Currently, this exploitation area produces a daily quantity of 21 million cubic feet .
During the event to present the tender, there was the presence and virtual participation of more than 40 companies, both national and international, both from the public and private sectors.
The delays in carrying out the tender for Campo Amistad have been the subject of significant criticism, including the possibility that the main importers have an interest in stopping the development of national natural gas production.
Energy Minister Fernando Santos Alvite dismissed these claims during an interview, arguing that legal and environmental obstacles have been a barrier to establishing an attractive proposal for private investors.
Although these challenges have not been fully resolved, the Government remains hopeful of reaching a contract that benefits the country before the end of its term.