Petroecuador: Investment Could Reach US$5bn with Reforms

Investment in Ecuador's oil sector could reach at least US$5bn if sector reforms advance, according to state oil company Petroecuador executive president Galo Chiriboga.

The sector's contribution to GDP could reach 20% in the next four years, Chiriboga said in a company statement.

The sector's potential is not being tapped and the country is becoming a net importer, said the executive. Other problems include environmental liabilities and poor quality fuels.

He outlined three strategies that could to turn the sector around: reorganizing the sector's administration to include the participation of the energy and mines ministry, Petroecuador and an entity to replace the hydrocarbons department (DNH); an integral development of upstream and downstream operations; and changes in Petroecuador.

The latter would include turning Petroecuador into a corporation to increase competitiveness and allowing it to form alliances and create public-private companies.

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