Belorusneft has inked another oil deal in Ecuador

Апреля 29, 2015

The subject matter is development of Block 28 located in the southeast of the country in Pastaza province. Exploration and oil production will be carried out by Belorusneft in consortium with state-owned oil companies Petroamazonas EP (Ecuador) and ENAP (Chile).

The contract for asset development was signed between the Ecuadorian Government and oil companies on April 16.

By experts' estimations, Block 28 reserves may amount to 50 million barrels of oil. At early stage, the experts of theAllianceare going to conduct geological exploration – the documents are now being coordinated in order to receive environmental license to proceed with oilfield development. The first stage of contract performance will take approximately three years. Total investments at this project stage will amount to 25 million USD.

Based on discovery of economically exploitable oil reserves on Block 28, the contract that has been signed automatically implies oilfield development and operation over a 20-year period.

It is to be recalled that the trilateral Agreement on theAlliancewas signed between Belorusneft, Petroamazonas EP (Ecuador) and ENAP (Chile) on July 23, 2013. According to the Agreement, the Belarusian company has a 7% interest in the consortium.