With international oil firms focusing on core markets and moving towards low-carbon solutions, Ecuador’s government will likely struggle to gain enough competitive bidders to participate in bid rounds, and any that do bid may not have the requisite experience to reduce operating costs while increasing productivity. With the country’s current production below 500mbd – and a goal of 1,000mbd – it will certainly be a challenge that requires committed investors.
“The expected boost in crude production is welcome as it will support current crude export revenues, as well as provide funds to develop domestic power generation from natural gas as the country moves to less expensive, low-carbon alternatives in support of domestic needs,” Alleyne continued.
In conjunction with access to key resources, the government also intends to increase its business appeal by reviewing hydrocarbon laws, renegotiating existing service contracts for more agreeable terms and continuing production sharing agreements.
This article was originally posted at sweetcrudereports.com