From Argus on September 26, 2014.
Original story link: Ecuador to grant Ishpingo oil field permit
Ecuador’s environment ministry will grant in October a permit for state-owned PetroAmazonas to develop the environmentally sensitive Ishpingo oilfield, which holds 50pc of the Ishpingo-Tambococha-Tiputini (ITT) block heavy crude reserves.
The ministry is about to approve PetroAmazonas’ environmental impact study for Ishpingo, the last step before granting a license to the state-owned firm to develop the oil field, said environmental deputy secretary, Paola Carrera, during the 2014 Oil & Power conference in Quito.
The ITT block lies mostly within the Yasuni national park, in the Amazon rainforest. Only the northern part of Tiputini is located outside the park.
Despite strong opposition from indigenous and environmental groups, on 22 May the environment ministry granted a permit for PetroAmazonas to develop the Tambococha and Tiputini fields, which together contain half of ITT’s 850mn bl reserves.
PetroAmazonas intends to begin drilling at Tiputini by May 2015 and to begin production by March 2016, with an initial 8,000 b/d expected. The company will start building the first of three platforms at the oil field in October and plans to drill 90 wells.
By the end of the second quarter of 2016, PetroAmazonas intends to launch production at Tambococha, with an initial 5,000 b/d. The firm will build another three platforms at the site and drill 90 wells.
Work at Ishpingo, where PetroAmazonas plans to install five platforms and drill some 150 wells, will begin in 2017 with production starting by 2018.
ITT’s crude will help increase Ecuador’s output from the current 550,000 b/d to 578,000 b/d in 2016 when Tiputini enters production and 664,000 b/d in 2017 when production at Tambococha starts, according to non-renewable natural resources ministry projections.
By 2019 ITT could reach a 200,000 b/d production peak. The block has a potential to produce at least 100,000 b/d of 14-15.5º API crude over 22 years with a total investment of $5.5bn and projected revenues estimated at $42bn-60bn.