In a bid to boost output Ecuador’s state owned Petroamazonas has awarded contracts for service work at 17 mature blocks in exchange for a total of $2.1 billion in investments over the next five years.
Houston-based Schlumberger, Dallas-based Halliburton, China’s Sinopec International, Colombia’s Montecz and Edinpetrol and Argentina’s YPF and Tecpetrol won the contracts.
The deal is intended to raise proven and probable reserves at the blocks to a total of 448.4 million barrels from current reserves of 227 million barrels.
Ecuador will also pay the companies an undisclosed fixed rate for each additional barrel produced at the blocks, Reuters said.
The 17 blocks currently produce about 107,000 barrels per day.
Petroamazonas will continue to operate the blocks but the service companies will take on the investment risk.
Halliburton also separately announced Wednesday that it plans to invest an additional $1 billion in Ecuador during the five year contract term.