PRESS RELEASE

Workover begins at four small fields in Ecuador

By
Wednesday, August 29, 2018

This Petroamazonas press release was published using an automatic translation system.

The National Government, through Petroamazonas EP, began work on the reconditioning of closed wells in the minor fields Drago, Guanta-Dureno, Parahuacu and Paka Norte, located in the provinces of Orellana and Sucumbíos.

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These works are contemplated within the activities foreseen in the contracts subscribed, in February of this year, with the private companies Consepetro SA; CNPC and Wayraenergy Ecuador, under the modality of providing specific services with financing from the contractor for the execution of drilling and completion activities; Reactivation of closed wells and construction and expansion of facilities.

According to the work schedule for Campos Minores, Petroamazonas EP is also planning to start drilling new wells, since September this year, activities that will allow an increase in production of around 77 million barrels, during the 10 years of use of the contracts.

"With the start of these activities, the compliance of both Petroamazonas EP and the contractors with which a total investment of USD 696.1 million was assured" informed the General Manager of the state, Alex Galárraga.

Hiring of labor and local services

With the aim of fostering employment generation and boosting the local economy through these projects, 126 people and about 22 individual and integrated services have been hired, such as cementing, well stimulation, bit services, among others. others.

For these contracts the payment of variable tariffs was established according to the WTI crude oil marker Petroamazonas EP will pay the contractors for their services USD 17.46 considering a WTI price of USD 60 per barrel.

Currently, Petroamazonas EP produces around 422,600 barrels of oil equivalent per day, with a total average cost to June of this year of USD 17.37 per barrel.