Postponement on Sundown-Clipper contract
Offshore staff
(Ecuador)-The government of Ecuador has postponed the signing of an E&P contract with Texas-based consortium Sundown-Clipper for two blocks that include the offshore block 5 in Guayaquil, according to an energy and mines spokesperson.
The delay came just before the proposed signing date of October 9, due to a need to revise the contract terms to fit within Ecuador's overall contract process with foreign oil firms. Sundown-Clipper had planned to devote part of its original $10 million investment to seismic activities in block 5, and then invest an additional $15-20 million in the drilling of two deepwater wells if oil were found.
In an added twist to this development, energy and mine minister Iván Rodriguez and Petroecuador president Luis Román Lazo met with representatives of the French oil institute (IFP) in Paris last week. In addition to signing a technical cooperation agreement, IFP will also assist the ministry and Petroecuador in revising oil contracts held by foreign oil companies operating in Ecuador. This includes the postponed Sundown-Clipper contract.
The main goal of revising the contract structure is to establish better terms for the state. This would translate into more money for local infrastructure projects, including roads, education and health programs.
10/14/05