Petroecuador: $1.1B in Block 15 Revenue Since Expropriation

Ecuador's state oil company Petroecuador brought in US$1.11 billion in revenue from crude produced on block 15 from mid-May to year-end, Petroecuador's Block 15 temporary administration unit reported, based on an average price of US$50/b.

Ecuador last year cancelled US oil company Occidental's (NYSE: OXY) contract for the block, taking over control in mid-May.

Exports totaled 16.3 million barrels for a total US$791 million in the period, while the remainder was covered by crude provided to Petroecuador through the Sote pipeline, which the company includes in its revenue statements.

Petroecuador produced an average 96,737b/d production of Napo crude in the period for a total 22.2 million barrels, or 98% of the company's target.

The company did not drill additional wells on the block during the period and experienced an average 2.92% monthly decline in production levels, equal to a total 3,000b/d over the period.

However, the company plans to begin drilling block 15's Eden-Yuturi field in mid-January.

The statement highlighted the fact the company saved US$30 million by lowering the cost of production per barrel by US$1.81 to US$4.74 compared to the previously anticipated figure.

Ecuador alleged the US company transferred a 40% stake in block 15 to Canadian oil firm EnCana (NYSE: ENC) in 2000 without government permission, overproduced some wells and did not comply with the block's investment plan.

Petroecuador as a whole produced 68 million barrels in 2006, or 186,554b/d, and expects 2007 output of 64.4 million barrels, or 176,438b/d, Reuters reported.

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