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
Interesting side development in Iran, CNPC is about to booted off of three major fields for non-completion. It is a very odd story, google it. What is CNPC thinking? to get out of Iran perhaps is the plan. It would put a big surplus in their development budget. Why would CNPC "blow" this almost exclusive opportunity in Iran? Is the Iran-US talks to blame? Iran's new government is trying to avert financial disaster on the one hand and pulling the rug on CNPC with the other? Something is going on here and I think its important.
Dayz!!! I google CNPC everyday, I read that story this morning, I thought the same as you. CNCP is getting out of Iran, and yes it will put a big surplus in their development budget, and IMO that money is now slated for EC.