Petroamazonas, IESS in talks to finance block 31 work

Ecuadorian state E&P company Petroamazonas and the country's social security institute IESS are in talks over possible financing for planned investment in block 31, according to the latter's board president Ramiro Gonzalez. The official made the announcement during the inauguration of Petroamazonas' Pañacocha production project. Plans for block 31 envision investment of roughly US$360mn, of which IESS could provide only 60%, a government statement quoted Gonzalez as saying. Results of the negotiations are expected in coming weeks, he added. Though a trust, IESS has already invested US$165mn in Pañacocha, which aims to hit 25,000b/d next year from an initial 8,000b/d. The goal is to reach 20 wells from the current 10, non-renewable natural resources minister Wilson Pastor was quoted as saying. Consortium Santos CMI-Consermin carried out Pañacocha's entire development, which included access roads, an unloading pier at the Aguarico river, three well pads, pipelines and the complete production complex. In related news, Pastor announced that agreements have been reached to sign two oil contract renegotiation deals with companies, whose names were not released. The deadline to sign the new contracts is November 23.