MercoPress. South Atlantic News Agency

Chile expands oil production in Ecuador

Chile's government owned oil company ENAP will expand its hydrocarbons activities in Ecuador in conjunction with the host country's company Petroecuador.

Enap already jointly exploits with Petroecuador a field in the Amazon region with a daily average production of 20.000 barrels and further exploration in the area has shown proven reserves of 25 million barrels of crude.

"Enap is interested in increased production and in further working with us. We already have a contract, and we are both very satisfied so we are planning to expand it", said Jaime Crow, a vice-president of the Ecuadorian corporation.

Enap has been exploring and producing oil from the heart of the Amazon region in four fields, Paraíso, Biguno, Huachito and Mauro Dávalos since 2002 totalling proven reserves of 51 million barrels.

"Since the agreement was implemented more reserves have been found and for the additional potential we will be signing a second agreement with another exploration and exploitation timetable", added Mr. Crow.

Petroecuador and Enap currently split profits from crude according to an agreed formula based on the international price of oil. With the new contract referential values are contemplated with the barrel surging in the range of 100 US dollars.

Energy short Chile actively promotes Enap overseas operations and currently is involved in Argentina, Iran, Peru and Egypt with a daily total production of 274.000 barrels in 2005.

"With the new contract Enap's production in Ecuador will increase although we have yet to define how much more", said Mr. Crow.

But Enap's objectives in Ecuador are not limited to oil in the Amazon, since the company is also interested in an additional field, Sucumbíos, with proven reserves of 42.5 million barrels.

"Chile has shown an interest but there are other countries who would like to join", underlined Mr. Crow who nevertheless pointed out that the current agreement with Enap is among the best and most profitable signed by Ecuador.