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Ivanhoe Energy Inc. Message Board

  • tradingdayz tradingdayz Apr 22, 2014 6:28 PM Flag

    Minister for oil, examining proposal?

    Feb 10, 2014 Ecuador Analyzes China’s Proposal to Expand Oil Operations
    QUITO, Ecuador–President Rafael Correa’s government is analyzing proposals from China to expand its oil operations in Ecuador, Minister for Strategic Sectors Rafael Poveda said Monday.

    National Petroleum, or CNPC, China’s largest oil and gas producer, is interested in the Sacha and Auca oil fields as well as block 31 and block 20, operated by Ecuador’s state-run company, Petroamazonas.

    A part of block 31 is located in the Yasuni National Park, while block 20 includes the Pungarayacu field with reserves of heavy oil, operated by Canada’s Ivanhoe Energy Inc.(IVAN)
    Pungarayacu contains around 4.5 billion barrels of oil-in-place. It is expected to produce more than 100,000 barrels a day, making its development a high priority for the government.
    “We need to develop these reserves responsibly,” said Mr. Poveda.
    The Pungarayacu development is made complicated by its heavy crude oil, which requires an investment of about $6.3 billion.

    Mr. Poveda said that CNPC has two contract options to expand its presence in Ecuador. One is a service contract for exploration and exploitation, while the other contract is for specific services. No official decision

    Some thoughts: Who added 100 million to the estimate? Last word from IVAN was 6.2 billion, in their presentation. Who chose the 100,000 barrels a day number? (Exactly). Who gave the 4.5 billion reserve number? Why is ITT missing from the list, ITT is block 43 and it includes Ishtipango but not Yasuni and 31 lies to the west closer to 20.Finally what is the proposal and what other options does the Ecuador government have?

    The plan is apparently drawn up by IVAN and all the numbers correlate to them. Yasunido's referendum is likely to fail, given the decline in poverty from 37 to 25 % in the last five years of Correa's government. What then is being analysed? Does EC have any alternative? Seems like they don't

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0.290.0000(0.00%)Feb 27 3:59 PMEST