Ecuador 2007
Exploration and Production
AAt 31 December 2007, Repsol YPF held mineral rights over 3 development blocks in Ecuador,
with a net area of 1,225 km2. The year's net production was 6.6 Mbbl (17,965 bbld) of oil, the majority coming from Block 16. Proven net oil reserves were estimated at 15.4 Mbbl at the end of the year. No exploratory surveys were drilled in 2007.
On 4 October 2007, President Rafael Correa, signed an Executive Decree by which the country's share in the “Extraordinary Revenue” was increased from 50% to 99%. Said decree was published in the Official Register on 18 October 2007.
In December 2007, the government issued a Tax Reform which, among other aspects, included modifications to the distribution of price surplus in benefit of the State, reducing it to 70% and opening the possibility of increasing the base price.
Milestones in 2007
• During the first half of 2007 an agreement was signed with the Ecuadorian government to transport part of the crude extracted from Block 15 through the Heavy Crude Oil Pipeline (OCP) for at least 2 years.
• 28 development wells were drilled in 2007 in block 16 where Repsol YPF operates with a 35% shareholding. The average 100% daily production in Block 16 in 2007 was 64,154 bbld.
Ecuador GLP 2007
Repsol YPF is the leader in LPG distribution in Argentina, Ecuador, Peru and Chile. This regional positioning, in addition to sources of production in Argentina, Bolivia and Peru, entails a significant competitive advantage through reinforcement of vertical integration.
In Ecuador, Repsol YPF is involved through Duragas, a leading company in the distribution of LPG that operates across the country with a market share of 39%. During 2007 Duragas commercialised 382 kt of
LPG. The sales price of bottled LPG in Ecuador is highly state-subsidised. Commercialisation is undertaken through a network of exclusive distributors.
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