Ecuador plans to boost oil output to 511,408 bpd in 2009

Sep 28, 2008 02:00 AM

The Ecuadorian government announced an increase in national oil production to 511,408 bpd during 2009, compared with the 499,596 bpd it expects to produce this year.
Mines and Petroleum Minister Galo Chiriboga said that the jump in crude production, which will reach an annual total of 186.7 mm barrels next year, will be achieved thanks to the investment made by state-owned PetroEcuador and the contribution of private companies operating in the country.

Chiriboga said there will be a 2.3 % increase in production compared with 2008, and will be achieved by the recuperation of 90 oil wells that are currently shut down and the drilling of another 59 wells, among other measures. He recalled that average production in 2005 was 506,680 bpd, rising to 517,604 bpd in 2006, dropping to 498,871 bpd last year and stabilizing at 499,596 bpd in 2008.
Chiriboga also said that production is expected to reach 565,000 bpd by 2010.

With regard to the outlook on the price of crude next year, the ministersaid that at the last meeting of the Organization of Petroleum Exporting Countries, or OPEC, the decision was taken to cut production to "stabilize prices."
He went on to say that there are two main factors that bode well for price stability -- OPEC's decision to reduce production and the oncoming Northern Hemisphere winter, which will boost demand.

According to Chiriboga, who based his remarks on OPEC studies, the price of crude next year is expected to reach an annual average of $ 123 per barrel in the case of West Texas Intermediate, the benchmark for Ecuadorian oil.
Oil is Ecuador's main export product and revenues from its sale finance about 35 % of government spending.

Source / AFX
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