This November 9, bids were opened for the purchase of 11.2 million barrels of Oriente and Napo crude oil, which on this occasion comes with two payment options: subsequent, which is usual, and advance payment, which was announced, for 1.2 billion dollars, but it could be for less money, given the current price of crude oil. Among the terms of this type of sale is stated: “The buyer will pay Petroecuador the total amount allocated in advance by bank transfer to the account specified by the seller. The value to be paid will be the value of the provisional invoice in full for the total volume of the assigned shipments, up to two working days before the first day of the loading deadline. The current CEO of Petroecuador, Reinaldo Armijos, talks about this controversial issue and other projects he has in the pipeline.

What will happen to the money from the sale? placeIn case the early repayment option wins?, it is worrying that they “eat” the resources of the next Government…

We have no communication with the government, which has no money and needs Petroecuador. This competition has something very special, in case you win the deposit will be returned to you every month. If it’s at $80 now, if it went up on delivery, it’s liquidated. But the ECB cannot find that money, what it could do is generate operations over night, which generate interest and can generate additional income for the state. Second, if the president-elect enters in December, the resources from this contest will go to the president-elect, because that’s what’s earned when the first shipment is delivered, which is November 30th. The government cannot take from the account and pay whatever it wants, this money has a destination: Petroecuador budget, Amazon law, CFDD, operators, suppliers, among others.

But would that $1.2 billion come all at once?

This is another monetary inaccuracy, if you multiply 11.2 million barrels by $82.4 per barrel, that gives us about $900 million. No $1.2 billion.

https://www.eluniverso.com/noticias/economia/petroecuador-prepara-venta-spot-por-1200-millones-que-compromete-crudo-hasta-marzo-2024-nota/

You were the one who said $1.2 billion…

When I said WTI was $95 or $96.

What are the projects that this administration has, at this moment when we are in a change of government?

Our business transformation goal is to launch two more processes by November. This month I am putting pressure on the appropriate area to put the capped wells out to tender and get back to the lighter issue. We need to improve the mechanisms of secondary production. But I have other milestones. Now we have stable production for eight days at 400,000 barrels. This has not happened since February 2021. We have a goal of reaching 410,000 barrels by December, and the highest day of production would be November 30 for a possible succession or transition.

How was it possible to increase production, which was not there before?

This was achieved by working day after day, with pressure. The management depends on the team, if the whole management is not aligned with the management and if the management is not in the daily work to exert pressure, it does not work. For me, every day is the last. In addition, we have improved relations with communities. We talked to companies to push the drills harder. We are changing the complete electrical structure from copper to aluminum. Don’t ask me why it wasn’t done sooner. Copper costs $3.50 to $4 per meter; aluminum, 30 cents. The cost of this change is minimal considering that Ecuador, due to the effects of energy losses, is reducing production by 13,000 to 15,000 barrels per day. Considering a barrel of 72 dollars, the loss is 972,000 per day, while a change of 600 km does not even cost us three million.

https://www.eluniverso.com/noticias/economia/plan-de-mejorar-octanaje-de-gasolina-sigue-en-pie-en-petroecuador-pese-a-mayor-precio-de-nafta-nota/

As for the communities, there were times when their demands were considered excessive.

We have to consider that the wealth of the country comes from them, we have to balance how much we lose by not managing the relationship properly. Up to 3,200 barrels were lost due to community issues. We are working to give them space and to give them international scholarships and that there could be a process of succession within the field. Now Petroecuador has no young workers and every company needs a succession process in which community members can work.

What will be the fate of the 87 octane petrol project which you said will be created by importing 85 octane petrol? I remind you that you commented that there will be an import of 80 lei, that is, will that project be abandoned?

This would be out next week. We will request variances for both RON 80 and RON 85. We will review the blends because what we are looking for is the import of less RON 95 and the use of more ethanol in the blends. It has to be decided, that is, we have to design according to international standards.