Ecuador to Offer Concessions on ITT Field

In an effort to boost production, Ecuador plans to offer concessions for the Ishpingo-Tapococha-Tiputini fields next month. The ITT fields have estimated reserves of 1.2 billion barrels. Energy Minister Carlos Arboleda said that concession rights will also be offered for the Pungarayacu field. Reserves at Pungarayacu are estimated at 700 million barrels.

The government is in favor of increasing private sector participation in the country's oil industry. However, details have yet to be finalized for concession rights. Ecuador's annual output has fallen by 6% over the past our years. Two-thirds of the country's 400,000 bpd of production are produced by state-run Petroecuador. There has been much opposition to allowing greater participation in the oil industry by the private sector. Last month oil workers staged a nine-day strike to oppose the move, causing the government to declare force majeure of exports.