Analysis on the renegotiation of contracts for the provision of services to participation

Abstract

The renegotiation of the oil contracts from Participation to Provision of Services, were signed at the beginning of 2011 for a term that varies from 5 to 18 years depending on the case. The Companies that renegotiated the Contracts were: Andes Petroelum Ecuador Ltd., Petrooriental S.A., AGIP, ENAP-SIPEC, PETROBELL, PEGASO Consortium, PETROSUD, TECPECUADOR and REPSOL. The renegotiated rates based on an equivalent rate in USD/Bl ranged from 15.47 to 71.00 USD/Bl and a global average of 33.09 USD/Bl. The new renegotiated rates vary from 16.72 to 58.00 USD/Bl and a global average of 31.84 USD/Bl, with committed Investments of 1,385 MMUSD and a reference WTI Price of 90.00 USD/Bl.