Released May 31, 2023 | SUGAR LAND
en
Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--PetroEcuador (Quito, Ecuador) during the presentation of its 2022 results highlighted that Ecuador could lose billions if Block 43 is not exploited, as public consultations on its closure are scheduled for this year.
Petroecuador's General Director Ramon Correa offered a balance of the company's operations in 2022, highlighting that some $16.47 billion could be lost over the next 20 years if Oil Block 43 is abandoned.
This energy asset is comprised of the Ishpingo-Tambococha-Tiputini oil fields, better known as the ITT. These oil fields are located in the Yasuni reserve in the Amazon, a protected area where indigenous communities live.
Oil exploitation in this oil block has been controversial due to the impact that it could have on the Amazon and local indigenous communities.
As a result, Ecuador's constitutional court approved a national consultation on oil exploitation at Block 43 this month. The referendum is expected to take place sometime this year, and it could bring the end of oil extraction at the ITT complex.
This oil asset is one of the largest in the country, with a production of 55,000 barrels of oil per day (BBL/d), 225 oil wells and 12 platforms, according to the information provided by PetroEcuador. This oil block represents about 15% of the company's oil output, which is between 375,000 and 400,000 BBL/d marks, and accounts for about 80% of the nation's oil output.
The decision to halt operations on the ITT would lead to $467 million in losses for the abandonment of the fields, $251 million in compensations for the next 20 years, $1.95 billion in investment losses, and $13.8 billion in lost revenue for the stoppage of production in the next two decades.
"Assuming that the consultation says no more activity in Block 43. We have to stop wells, and after that, we have to leave the field, but it is not that we take the backpack and leave. We have to return the jungle to the condition in which it was. You have to remove pipelines, dismantle facilities, plug the wells... that takes a period of six years," said Correa during the presentation.
Environmental groups have opposed oil extraction at the Yasuni reserve for years, making the national consultation the opportunity to halt extraction from this area.
Finally, President Guillermo Lasso set the goal to double Ecuador's oil production to 1 million BBL/d under his tenure, which expires in 2025, though oil output has remained relatively flat in the last years.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Petroecuador's General Director Ramon Correa offered a balance of the company's operations in 2022, highlighting that some $16.47 billion could be lost over the next 20 years if Oil Block 43 is abandoned.
This energy asset is comprised of the Ishpingo-Tambococha-Tiputini oil fields, better known as the ITT. These oil fields are located in the Yasuni reserve in the Amazon, a protected area where indigenous communities live.
Oil exploitation in this oil block has been controversial due to the impact that it could have on the Amazon and local indigenous communities.
As a result, Ecuador's constitutional court approved a national consultation on oil exploitation at Block 43 this month. The referendum is expected to take place sometime this year, and it could bring the end of oil extraction at the ITT complex.
This oil asset is one of the largest in the country, with a production of 55,000 barrels of oil per day (BBL/d), 225 oil wells and 12 platforms, according to the information provided by PetroEcuador. This oil block represents about 15% of the company's oil output, which is between 375,000 and 400,000 BBL/d marks, and accounts for about 80% of the nation's oil output.
The decision to halt operations on the ITT would lead to $467 million in losses for the abandonment of the fields, $251 million in compensations for the next 20 years, $1.95 billion in investment losses, and $13.8 billion in lost revenue for the stoppage of production in the next two decades.
"Assuming that the consultation says no more activity in Block 43. We have to stop wells, and after that, we have to leave the field, but it is not that we take the backpack and leave. We have to return the jungle to the condition in which it was. You have to remove pipelines, dismantle facilities, plug the wells... that takes a period of six years," said Correa during the presentation.
Environmental groups have opposed oil extraction at the Yasuni reserve for years, making the national consultation the opportunity to halt extraction from this area.
Finally, President Guillermo Lasso set the goal to double Ecuador's oil production to 1 million BBL/d under his tenure, which expires in 2025, though oil output has remained relatively flat in the last years.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
