Ecuador is stepping up exploration and development action in a bid to stem a continuing decline in oil reserves.
One of the two smallest producers in the Organization of Petroleum Exporting Countries, Ecuador is expected to experience its third consecutive annual decline in total oil reserves this year (OGJ, Dec. 18, 1989, p. 23).
Among current exploration programs, army helicopters have flown in components of a new $7 million Helmerich & Payne Inc. rig Unocal Ecuador Ltd. is using in its Ecuadorian exploration program. H&P, Tulsa, designed and built the rig, rated to 18,000 ft and featuring selective catalytic reduction controlled electric power.
For future programs, Petroleos del Ecuador (Petroecuador) under its sixth bidding round received bids covering about $1 00 million in exploration on three blocks in the Oriente region.
In addition, Petroecuador plans to start production from four new fields in 1990-91. The state oil company also plans to boost flow from its newest producing field in the Amazon region.
International Energy Agency data show Ecuador produced 300,000 b/d of oil in April. In January, the U.S. Central Intelligence Agency estimated Ecuador's maximum sustainable production capacity at 330,000 b/d.
Ecuador's first half OPEC quota was 273,000 b/d, a level to be maintained through the second half as a result of OPEC's latest ministerial meeting (OGJ, May 7, p. 24).
Most of Ecuador's production comes from older fields in decline.
EXPLORATION WORK
H&P has a 30 month contract with Unocal to drill exploratory wells on Unocal's jungle Block 13 in Ecuador's Oriente region. H&P assembled the rig in Houston, transported it by ship to Ecuador, and trucked it 875 km over the Andes to a base camp in the jungle.
Planned exploration outlays involve bids submitted by Mobil Oil Corp., a combine of ARCO and Mobil, and a group led by Conoco Inc. (OGJ, May 14, p. 46).
Conoco and partners will spend $84 million for a program covering exploration on Block 22 (see map, Dec. 11, 1989, p. 26).
Conoco plans to shoot 2,000 line km of seismic surveys and drill eight wildcats. Included in the bid sum is a $2.4 million contribution to Petroecuador's training programs.
Exploration plans for Mobil separately on Block 18 and in partnership with ARCO on Block 19 currently extend only to an undisclosed amount of seismic surveys.
Negotiations between Petroecuador and the oil companies on the bid work have begun, with service contracts expected to be signed within 6 months.
NEW FIELD START-UPS
Petroecuador plans to place Paraiso oil field in the Oriente region on stream this year, with production climbing to 21,000 b/d.
Petroecuador in 1987 tested 1,659 b/d of 24 gravity oil at 1 Paraiso (OGJ, Nov. 23, 1987, p. 24).
In addition, Petroecuador expects to start up Frontera, Cantagallo, and Coca fields in 1991. Those three are also in the Oriente region.
Petroecuador, formerly Corp. Estatal Petrolera Ecuatoriana (CEPE), gauged 5,800 b/d of 35 gravity oil at 1 Cantagallo (OGJ, Aug 15, 1988, p. 31). CEPE then estimated production potential at 10,000 b/d.
CEPE 1 Frontera flowed 3,923 b/d of 30.7 gravity oil and 576 b/d of 23.5 gravity oil from two Napo zones near the Colombian border (OGJ, Mar. 21, 1988, p. 31).
Coca is a small field southeast of Sacha and Shushufindi oil fields in what was then the Texaco Inc.-CEPE contract area (see map, OGJ, June 21, 1982, p. 91).
Meantime, Diego Tamariz, Ecuador's Minister of Energy & Mines, has ordered Petroecuador to hike production from Pucuna field in the Amazon region to 6,000 b/d. Petroecuador started up Pucuna recently with flow of 4,000 b/d of 22-25 gravity crude (OGJ, May 14, p. 46).
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