Petroecuador Set to Expand Production at Auca, Pacoa Oilfields

---

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Petroecuador, the national oil company of Ecuador, said Monday that it had received environmental permits to expand its operations at the Auca field (Block 61) and Pacoa field (Block 1) in the Orellana and Santa Elena provinces, respectively.

With this license, the company aims to increase its oil production and improve its finances.

Petroecuador will be authorized to construct 26 new platforms, nine stations and one substation at the Auca field as part of the new permits. Additionally, the oil company will be allowed to expand 39 platforms, stations, and substations and the drilling of 420 oil wells.

The energy company also will be allowed to expand its operations at its Pacoa field. With this license, Petroecuador will be able to build six new platforms and drill 10 new wells at this asset.

The northern and eastern regions, such as Orellana, are some of Ecuador's key oil production areas as they host the ITT block and the Sacha, Auca and Shushufindi fields. However, these areas have also faced social unrest; clashes with the local population have impacted operations and energy infrastructure.

The Ecuadorian government has vowed to double its oil production from the current 500,000 barrels of oil per day (BBL/d), though reaching those volumes seems unlikely given that the government has only two and a half more years of mandate.

However, some oil production gains could be achieved in the next few months or years with developments such as those seen in Auca and Pacoa. Petroecuador currently represents about 80% of the nation's total oil output. In the first 18 days of December, the national oil company produced an average volume of 370,000 BBL/d.

On December 11, the Auca field as well as another six fields, which compose a significant portion of Petroecuador's oil output, went offline due to severe weather and a power outage. This incident impacted 726 oil wells, or 46% of the company's oil output.

As a result of the power failure, Petroecuador saw its oil output collapse by about 50,000 BBL/d on December 11, according to official numbers. Nevertheless, production returned to normal levels in the following days as power-related issues were addressed.

Industrial Info is tracking 148 projects from Petroecuador, worth US$1.12 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining and Oil & Gas production project databases can click here for a list of project reports.

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 more than 200,000 current and future projects worth $17.8 Trillion (USD).