Ecuador Expects Oil Production to Increase to 500,000 bpd by 2027

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Ecuador's president expects oil production to rise to 500,000 bpd by the second half of 2027. The eventual closure of the ITT Block could complicate efforts to meet this goal. Meanwhile, Industrial Info Resources is tracking 224 oil-production projects in Ecuador worth US$854 million.

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Ecuador's Oil Production

Ecuador's President Daniel Noboa said during an interview with Radio Elite in September that he expects oil production to increase to 500,000 barrels of oil per day (bpd) by the second half of 2027. However, the government still faces the controversial closure of the Ishpingo-Tambococha-Tiputini block/production area, known as the ITT block, following the 2023 referendum.

"We are working with international companies, and negotiations are at an advanced stage to increase production and smoothly reach the 500,000 barrels mark by the second half of next year," said Noboa during the interview.

In the first half of this year, Ecuador produced 459,800 bpd, a 1.5% decline from the same period last year, according to Ecuador's Central Bank oil sector report. Of the total output, Petroecuador, the state oil company, produced 362,800 bpd, or 79% of Ecuador's total.

However, Noboa's remarks come three years after Ecuadorians voted to end oil extraction from the ITT block, one of the country's largest oil assets. The block, which is operated by Petroecuador, averaged an output of 41,700 bpd between January and July this year, a 5.3% year-on-year increase, according to the state company's numbers.

Oil extraction at the ITT block, located in the Yasuni National Park in the Amazon, has long faced opposition from environmental and indigenous groups. However, following the 2023 referendum, the government was required to progressively halt oil extraction activities from the block within one year.

At the time, Petroecuador warned that shutting the ITT could lead to multibillion-dollar losses over 20 years. Three years after the referendum, the ITT block still accounts for a significant share of Ecuador's output.

In 2023, Noboa said the referendum's results would be respected, but his government has argued that the closure process could take years, which could affect production targets.

The eventual closure of the ITT block would push Ecuador to require other fields to replace its production to reach the president's goal. Petroecuador's plan in 2025 called for the progressive closure of the ITT block over a period of five and half years.

Increasing Production

The president did not elaborate on which companies were part of the negotiations to increase oil production by next year. Among the private operators in Ecuador are Geopark, Pluspetrol, and Gran Tierra Energy.

In June, Petroecuador, for its part, announced plans to reactivate 200 closed wells in 2026 in an effort to boost output.

According to Industrial Info Resources data, there are 176 Petroecuador-owned oil production-focused projects in Ecuador representing investments of US$706 million. Including all oil production projects, IIR has mapped 224 projects worth US$854 million. Of those, 162 oil production-focused projects worth US$422 million are expected to be completed by the end of 2027.

Key Takeaways

• Ecuador's President is targeting oil production of 500,000 bpd by the second half of 2027.
• The ITT Block remains one of Ecuador's largest producing assets.
• Industrial Info Resources is tracking 224 oil-producing projects worth US$854 million in Ecuador.

About Industrial Info Resources
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, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).