Schlumberger to pump nearly US$5bn into Ecuador

Ecuadoran state E&P operator Petroamazonas and Schlumberger signed a service contract whereby the global oil and gas company will invest US$4.9bn in block 61.

Schlumberger will disburse US$1bn in the coming days for new investments, according to a statement from Petroamazonas, which will continue to operate the block.

In addition, during the first nine years of the contract, Schlumberger will invest US$2.1bn to optimize and increase production on the acreage up to 20,000b/d, of which US$1.1bn will be carried out in the first three years.

The private firm, whose investment will be amortized through a tariff per barrel produced, also will take on US$1.8bn in operational costs at the block over 20 years.

Petroamazonas highlights that the deal will free up money the state had allocated to finance these operations.

The country has seen oil export revenue fall amid the low commodity price environment.

Hydrocarbons regulator ARCH reports that Petroamazonas produced 336,148b/d on December 13, followed by sister state E&P operator Río Napo with 74,140b/d and private companies with 108,754b/d.