India-based company announced intentions to purchase a stake in oil fields in Ecuador, on April 11, 2018.
ONGC Videsh Ltd., an oil company based in India revealed that it is seeking a stake in the oil fields in Ecuador. Oil minister of Ecuador said that the company may also participate in an upcoming tender for the Intercampos blocks.
Perez said “We will be signing a confidentiality agreement with them (ONGC Videsh) in the following weeks and we will provide them with information in new blocks. They are (also) interested in partnerships with companies to take a share in the current production in certain fields over there.”
The company is looking for fields with a minimum of 25,000 barrels per day of oil production. The managing director of ONGC Videsh, N K Verma said “We had a good meeting with Ecuador and we will explore possibility of expanding our footprints in Ecuador. We are already present in Colombia.”
The crude produced by Ecuador is heavy in quality, and thus extremely suitable for processing at complex refineries in the U.S. and Asia.
OPEC requires capital to replace oil reserves, revitalize production, and overhaul refineries and terminals. However, a decline in output by oil firms has been experienced over the last few years due to frequent changes in contracts.
Furthermore, China National Petroleum Corp (CNPC), which already holds investments in the upstream sector in Ecuador, is now interested in downstream projects such as a 300,000 barrels per day oil refinery.
According to plans, this complex refinery plant will be capable of processing crude of API 14 degrees produced at the Ishpingo, Tambococha, and Tiputini (ITT) field located in a national park in the Amazon.