• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 7 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 7 days Aramco Says No Plans To Shelve IPO
Oil Quality Issues Could Bankrupt Venezuela

Oil Quality Issues Could Bankrupt Venezuela

Falling Venezuelan oil quality could…

Ecuador, Schlumberger Reach Agreement On Debt Payments

Oil

Ecuador’s government has reached an agreement with Schlumberger to start repaying a debt accumulated over the last few years, according to a Reuters report. The government also said the oilfield service major had agreed on new investments to the tune of US$1 billion.

The debt, which Schlumberger in March calculated at US$1.1 billion, has been giving the company a headache, pressuring its first-quarter results. Talks on the repayment had stalled for a few months and Schlumberger started to get impatient.

Ecuador, which is the smallest member of OPEC, has had a tougher time than other members. In addition to the oil price slump, the country suffered a devastating earthquake last year, with damages estimated at US$3 billion and more than 660 people killed.

Despite these woes, the new government of the Andean nation was quick to signal its willingness to start repaying what’s due Schlumberger. In June, the country’s new Oil Minister, Carlos Perez, said as quoted  by Reuters, that the negotiations will focus on interest rates and partial repayments, as well as talk about additional investments.

Total debts that Ecuador owes various oilfield service companies stand at US$2 billion. The Lenin Moreno government is planning on redeeming this partly in cash and partly in government bonds.

Ecuador already paid a small part of its debt to Schlumberger, some US$150 million, in central bank notes that the company can use to pay taxes in Ecuador. Other types of bonds are also under consideration. That leaves about US$950 million yet to be repaid.

Related: Daily OPEC Oil Prices Now Public For The First Time Ever

Ecuador has proven reserves of around 4 billion barrels of oil as of mid-2016, worth around US$200 billion in potential revenue at $50 per barrel. A lot of this oil, however, is located in the Yasuni National Park, where drillers currently have no access.

Daily output is 527,000 bpd according to the most recent OPEC figures for June. The country pledged to cut its production to 522,000 bpd as per the OPEC production cut agreement, but last week, the Energy Minister announced it would no longer adhere to its quota as it was struggling to make ends meet and needed all the oil revenues it could get.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News