Ecuador and ENAP SIPEC, a subsidiary of Chile’s state-owned oil company ENAP, have renegotiated an oil agreement for a block in the Ecuadorian Amazon. The new agreement includes an additional investment of $90 million until 2035, aimed at increasing reserves by 5.6 million barrels of crude oil. The majority of the investment will be carried out within the first five years of the agreement, focusing on block 46 in the province of Orellana, which currently produces 16,700 barrels per day. ENAP’s total production in Ecuador is currently 28,443 barrels per day. The renegotiated agreement demonstrates Ecuador’s commitment to boosting oil production, potentially leading to higher production and revenues for the country. The agreement also highlights the continued importance of oil exploration and production in the region. However, it also raises concerns about the potential environmental impact of increased oil production in the Amazon, particularly in terms of deforestation and greenhouse gas emissions.
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