Block 15 Costs Reach US$5.13/b in Q1
First quarter operating costs at Ecuador's block 15 reached US$5.13/b, according to Wilson Pastor, CEO of the UB-15 temporary administration unit operating the block, which belongs to state oil company Petroecuador.
Ecuador expropriated the block from US oil company Occidental (NYSE: OXY) in May 2006.
Occidental's operating cost was US$7.20/b, while the budgeted operating cost has been set at US$6.69/b, Pastor said in a Petroecuador statement.
The executive attributed the drop to the departure of 40 US Occidental employees, whose average salary was US$15,000 a month and the elimination of Occidental's US$60mn/y financial costs.
Improved control of subcontractor contracts has also helped reduce costs, he said.
Visit BNamericas to access our real-time news reports, 10-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.
- Ecuador to Offer Oil Blocks Under New Bidding Terms in Jan (Oct 06)
- Kemp: Oil Price War Inflicts Collateral Damage in Latin America (Feb 09)
- Ecuador's Petroamazonas Seeks Partners to Boost Oil Output (Sep 26)