Ecuador's Amazon area block is declining in production
Ecuador's Block 15, in the Amazon region, has a natural decline of 3 % per month in its production, meaning
state-owned Petroamazonas will concentrate future investments in new projects, a high level government official
said.
"There is no way to stop the fall of production in Block 15," said Petroamazonas executive Wilson Pastor.
Petroamazonas, a unit of state-run PetroEcuador, operates the former Occidental Petroleum fields in Block 15, which
last year had an average oil output of around 99,132 bpd. The government seized Block 15 in May 2006, alleging that
Occidental had broken the terms of its operating contract.
For 2010, Petroamazonas's budget is $ 730 mm. Of the total, $ 478 mm will go to investment and the remaining $ 252 mm
to operating costs.
Petroamazonas plans to get about $ 500 mm in financing, apart from its budgeted funds, from other sources, such as
providing services under contract. Petroamazonas also plans to incorporate in its production 15,000 barrels of crude
oil per day from the Panacocha oilfield to reach a total production of 113,000 bpd in the last quarter.
The Panacocha field is expected to produce up to 25,000 bpd. Production is expected to begin in September. Ecuador's
Social Security Institute is expected to provide $ 165 mm of $ 276 mm needed to develop Panacocha oilfield.
