Petroecuador has announced two auctions – one for its flagship offshore natural gas field and the other to upgrade the Esmeraldas refinery.

The state-run oil company of Ecuador is seeking bids from a private companies to construct and operate a high conversion unit to process residue from the Esmeraldas refinery.

This refinery currently has a daily processing capacity of 110,000 barrels.

The investment estimated initially to upgrade this refinery project has been put at $2.7bn.

The upgraded refinery will help the company boost the quality of fuel for domestic consumption.

Petroecuador is seeking a partner to explore and develop the Amistad natural gas field in Guayaquil Gulf.

Currently, this field generates 24 million cubic feet per day (mmcfd) of natural gas.

Petroecuador said in an earlier release that it “seeks to increase production at the Amistad field and maximise the recovery factor of its deposits in the block.”

The company aims to achieve 100 mmcfd of gas production from Amistad natural gas field and for this, the company requires an investment of around $500m.

This natural gas is anticipated to be used for transportation, power generation, or manufacturing fertilizers including urea.

Petroecuador anticipates receiving letters of interest for both the tenders between 13 and 24 June.
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Image: The investment estimated initially to upgrade this refinery project has been put at $2.7bn. Credit: Frauke Feind from Pixabay .