Noble Exits Ecuador

- Noble Exits Ecuador

Tuesday, May 31, 2011
Noble Energy Inc.

Noble has received compensation totaling $97 million for the transfer of its assets in Ecuador to various government-affiliated entities. Compensation was received for the offshore Amistad field assets and Block 3 production sharing contract which was terminated by the government of Ecuador on November 25, 2010. In addition, total proceeds included an amount for the assignment of the Machala Power Electricity concession and its associated assets. Noble Energy previously owned these assets with a 100 percent working interest. The Company's net book value for the assets totaled approximately $68 million.

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Oil Companies to Invest $1.38B in Ecuador

Oil Companies to Invest $1.38B in Ecuador

Friday, April 08, 2011
Dow Jones Newswires

by  Mercedes Alvaro

Oil companies and consortiums operating in Ecuador under service provider contracts will invest $1.38 billion in the Andean country during the 2011 to 2025 period, the Ministry of Nonrenewable Natural Resources said Friday.

Companies investing in the oil sector include China's Andes Petroleum and PetroOriental, Italy's Eni, Spain's Repsol, and Chilean state oil and gas company Empresa Nacional del Petroleo, or Enap.

The investments will be made in 14 oil fields, with about $1.1 billion going into production while the rest will be invested in exploration. On its website, the ministry said of the total figure, 87% will be invested up to 2014.

For this year oil companies are seen investing $468 million, of which $409 million will be invested in production activities and $59 million in exploration.

In January Ecuador's government concluded almost three years of negotiations aimed at gaining more control over its natural resources and increasing its oil revenue by replacing production-sharing deals with services contracts.

The services contracts turn the companies into service providers for the exploration and extraction of hydrocarbons. Companies will receive a fee rather than sharing profits.