The recent signing of a contract modification between Ecuador's hydrocarbons department (SHE) and Sipec, the local subsidiary of Chile's state oil company Enap, to boost activity reflects the sector's growing attractiveness amid a government push toward a more market friendly operating environment.
The deal envisions additional investment of US$65.2mn to drill 10 wells at the Mauro Dávalos Cordero (MDC) block, also known as block 46, to add around 10Mb by 2034.
Sipec's estimated investment for 2018 reaches close to US$50mn, and last year the operator invested US$46.4mn, up from the original budget of US$18mn.
"This capture of new private investment has materialized thanks to the confidence generated by the national government," said hydrocarbons vice minister Patricio Larrea.
For his part, Sipec general manager, Diego Díaz, said that "this investment [fits] in the framework of Enap's institutional mission, and thanks to legal stability and guarantess that the Ecuadoran state offers."
Díaz added that the Chilean company reamains open to working with Ecuador on future oil tenders.
To learn a bit more about Sipec, which - according to its parent - in January became the first oil operator in Ecuador to obtain carbons neutral certification, BNamericas provides a snapshot of the operator's footprint in the country.
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