Royal Dutch Shell, Mitsubishi Corp. and Trafigura presented bids for a contract to lift some 20.2 million barrels (bbl) of Ecuadorean crude between 2020 and 2023, the Andean country’s energy minister told reporters on Dec. 3.
The country expects to pick a winner for the contract, which is expected to generate $950 million in export income for Ecuador, in the coming days, said the minister, Jose Agusto.
Ecuador invited some 51 companies to participate in the auction, the first of its kind in more than a decade. The price of the oil will be determined by a formula taking into account the price of the country's oil sales on the spot market plus a premium.
Shell, through its Shell Western Supply and Trading Unit, proposed the highest premium, according to state oil company Petroecuador.
Under the contract, Ecuador will deliver the winner four shipments of 360,000 bbl each of Oriente-grade crude in 2020 and 2021. In 2022 and 2023, the country will deliver the winner 24 shipments of the same amount per year.
Ecuador produces some 545,000 bbl per day of crude.
Recommended Reading
TGS, SLB to Conduct Engagement Phase 5 in GoM
2024-02-05 - TGS and SLB’s seventh program within the joint venture involves the acquisition of 157 Outer Continental Shelf blocks.
2023-2025 Subsea Tieback Round-Up
2024-02-06 - Here's a look at subsea tieback projects across the globe. The first in a two-part series, this report highlights some of the subsea tiebacks scheduled to be online by 2025.
StimStixx, Hunting Titan Partner on Well Perforation, Acidizing
2024-02-07 - The strategic partnership between StimStixx Technologies and Hunting Titan will increase well treatments and reduce costs, the companies said.
Tech Trends: Autonomous Drone Aims to Disrupt Subsea Inspection
2024-01-30 - The partners in the project are working to usher in a new era of inspection efficiencies.
Drilling Tech Rides a Wave
2024-01-30 - Can new designs, automation and aerospace inspiration boost drilling results?