Petroproduccion, CPEB Ink Contract for US$17 Million

The Petroproduccion subsidiary of Ecuador's state oil company Petroecuador has signed a contract with China's Changqing Petroleum Exploration Bureau (CPEB) for the drilling of four vertical wells on the Atacapi Parahaucu field in the Amazon region.

The contract also relates to the provision of services related to environmental impact studies (EIS), access roads and platforms, Petroecuador said in a statement.

CPEB will receive US$17.4mn for the works minus the corresponding 12% VAT to increase production on the field 30%.

The field is expected to increase Petroproduccion's output by at least 2,000b/d. The subsidiary produced at a rate of 339,231b/d in August 2006, BNamericas previously reported.

CPEB will have one year to complete the works after Petroproduccion receives the EIS license.

Petroproduccion already has begun studies and CPEB could begin drilling in 4-5 months, a Petroecuador spokesperson told BNamericas.

Petroecuador's administrative council approved a resolution in November last year to sign the contract with CPEB.

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