Ecuador Oil and Gas Report - Business Monitor International - Industry Reports

Ecuador Oil and Gas Report

Ecuador Oil and Gas Report - Business Monitor International - Industry Reports
Ecuador Oil and Gas Report
Published Aug 30, 2016
86 pages — Published Aug 30, 2016
Price US$ 1,295.00  |  Buy this Report Now

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We maintained our forecast for Ecuadorian liquids production to account for increased investment into its mature oil assets. We now expect the country to return to growth in ---- as oilfield services (OFS) providers boost output from existing projects. The controversial ITT heavy oil field project advanced in July following the spudding of Petroamazonas first well in the Tiputini field in April. Located on the fringe of the Yasuni National Park, the development of Block -- in the Amazon rainforest has continued despite strong grassroots and international opposition to the project given the environmentally sensitive nature of the area. In July, the government announced the field held more that ---mn bbl more than originally expected, encouraging our more optimistic reserve outlook. ...With respect to gas, activity remains centred on bolstering output from Block - in the Gulf of Guayaquil. While there has been some investment into further exploration, we believe production of natural gas will remain minimal such that output will begin to slip toward the mid-point of our forecast period.

...Ecuador s proven oil reserves were estimated at -.--bn barrels (bbl) by the Energy Information Administration (EIA) in ----, a -.-bn increase over ----. This affords the country the fourth largest reserves in Latin America, after Venezuela, Brazil and Mexico. ...The yearly budget for state-owned Petroamazonas, which operates over -- of the country s market, was reduced from USD-.-bn in ---- to USD-.-bn in ----. We expect their budget will be reduced further in ---- as Brent benchmark prices remain low and volatile (see US, Not OPEC The Game Changer For Prices Over ---- , April -). Consistently weak benchmark prices will weigh on the profitability of domestic grades and reduce exploration activity for the foreseeable future. The two largest producers in Ecuador, CNPC s Andes Petroleum and Repsol both cut back on exploration in the country in Q--- due to a payment dispute with the government. With no progress reported as of time of writing, we do not anticipate these companies to resume drilling, particularly as the government remains in a challenging financial position amid less valuable crude exports.

...A growing need to increase production led the Ecuadorian government to abandon a ---- UN-brokered agreement to refrain from drilling in the Yasuni national park. The deal was for the lands to remain free of resource extraction programmes in exchange for international contributions of USD-.-bn. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Ecuador Oil and Gas Report" Aug 30, 2016. Alacra Store. Oct 21, 2016. <>
Business Monitor International - Industry Reports. (2016). Ecuador Oil and Gas Report Aug 30, 2016. New York, NY: Alacra Store. Retrieved Oct 21, 2016 from <>
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