Petroecuador, Enap Sign Energy Cooperation deal, Contract Extension
Ecuador's state oil company Petroecuador and its Chilean counterpart Enap signed an energy cooperation agreement on Tuesday, Petroecuador said in a statement.
Under the agreement, Petroecuador aims to develop contracts to purchase refined products such as liquefied petroleum gas (LPG), gasoline and diesel. Enap plans to purchase Oriente crude for its own refineries and eventually Napo crude for its future hydro-treatment plants.
Petroecuador aims to call for the tender of crude derivative supplies next month, a Petroecuador spokesperson told BNamericas.
Napo crude, which has an average API grade 19, has been sold through March 2007. Petroecuador could tender the supply of Oriente crude, which has an average API grade 24, to Enap for one-year periods, the spokesperson said.
Petroecuador and Enap will begin negotiations for specific agreements within 60 days, the spokesperson said, expanding on the statement.
The two companies also signed an extension of the "specific services" contract held since 2002 between Enap's and Petroecuador's respective subsidiaries Sipec and Petroproducción, according to the statement.
As part of the agreement, Chile will invest some US$36mn toward the drilling of five development wells, one advanced well and one injector well, as well as facilities and environmental protection in Orellana province's Mauro Davalos Cordero field.
The aim of the contract extension is to increase current combined crude production of 13,000-14,000 barrels a day (b/d) on the Mauro Davalos Cordero field by an additional 3,000b/d, the spokesperson said.
The contract provides 90% of crude production to Petroproduccion, with the remaining 10% for Sipec, the statement said.
Crude produced on the field has 22-26 grade API. Investments total more than US$46mn to date.
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