Chile's Oil Firm Puts Ecuador Projects on Hold after Price Slump

Source: Reuters 5/3/2015, Location: South America

Chile's state oil company ENAP has decided to postpone projects in the Ecuadorian Amazon because of the global crude price collapse, a local newspaper reported on Sunday, citing the company's chief executive.

Marcelo Tokman was quoted saying in an interview with daily La Tercera that Ecuador's central government and local authorities had agreed to the postponement.

The interview did not give any additional details on the projects.

In April, Ecuador signed an $82 million production contract with ENAP for the oil block Paraiso-Biguno-Huachito after the discovery of 8 million barrels of crude reserves there. ENAP also has a 42 percent stake in Ecuador's oil block 28.

Low oil prices have prompted ENAP to cut its total investment plan for 2015 by 16 percent to $651 million, $94 million of which will fund exploration and production, Tokman was cited saying in La Tercera.

Tokman also said ENAP is seeking partners to develop electrical generation projects in Chile.

Related Categories: Coal  Electricity  General  Natural Gas  Oil 

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