Petroecuador’s unions and workers have called on Daniel Noboa’s government to intervene in the state-owned oil company amid its ongoing crisis. At the same time, they have expressed their support for the injection of foreign investment through the delegation of the operation of the Sacha Field – Block 60 to an international consortium.

This move recalls the failed attempt by Rafael Correa in 2008, when he handed over the same block to Río Napo, a company owned by Petroecuador and PDVSA (Venezuela). However, the project collapsed and was dissolved in 2016 due to poor development and lack of liquidity. This precedent has led all Ecuadorian presidents to seek foreign investors for this key oil block.

Government Response: New Participation Contract

In response to the situation, the government plans to sign a participation contract, similar to those used by previous administrations for other oil blocks. This specific agreement involves a 20-year participation contract with a Chinese-Canadian consortium, consisting of 60% Amodaimi Oil Company (a subsidiary of Sinopec International Petroleum Exploration) and 40% Petrolia (a subsidiary of New Stratus Energy).

The deal aims to increase production from 75,000 to over 100,000 barrels per day, with an investment of $1.75 billion in modernization and an advance payment of $1.5 billion to the state.

Crisis and Deterioration of Petroecuador

The Sacha Field, located in Joya de los Sachas, has been operated by Petroecuador since 1972. However, lack of investment and corruption have led to severe infrastructure deterioration, limiting its production capacity.

The situation is further complicated by 530 unresolved environmental liabilities and 90 gas flares burning 18 million cubic feet of gas per day, causing significant environmental damage.

Workers’ Concerns and Support for Private Management

Petroecuador’s workers warn that the state-owned company lacks the capacity to modernize the block. Without foreign investment, production will continue to decline.

For this reason, they have supported the delegation of the field’s operation to a private consortium, ensuring greater efficiency and profitability.

Impact of the New Contract

The consortium will take responsibility for the modernization of the block, drilling new wells, and eliminating the flares to generate clean energy.

80% of the profits will go to the Ecuadorian state, ensuring revenue without privatizing the resource.

With a current production of 473,000 barrels per day, Ecuador aims to restore its productive capacity and strengthen its economy through this private participation model.

The intervention in the Sacha Field represents a significant shift in the country’s oil policy, moving away from the nationalization model that dominated previous governments.