Belorusneft signs agreement on geologic exploration, development of oil block in Ecuador

The industrial group Belorusneft has signed an agreement on the geologic exploration and development of an oil block in Ecuador, the company’s press service told BelTA.

The agreement stipulates technical and economic conditions for the exploration and development of block No. 28. The agreement was signed in late August by representatives of the alliance that comprises Belorusneft, Petroamazonas (Ecuador), and ENAP (Chile) on one side and the Secretariat for Hydrocarbons of the Nonrenewable Natural Resources Ministry on the other side.

The area where the oil block is located is adjacent to the mountain range Andes. The structures that have been revealed in the area are of strong geological interest. It should be noted that the operation will be a difficult one because block No. 28 is located in hard-to-reach places of the Amazon River rain forest.

In accordance with the terms of the state tender of Ecuador for getting the license to exploit the oil deposit the winner gets a contract for the geologic exploration of underground resources for four years. If commercial oil reserves are found, a contract for 20 years of development and exploitation of the deposits will be signed.

The agreement is another step on the way to signing the contract for the exploration and development of block No. 28. All the details including legal and technical ones will be discussed within the next two months.

The alliance of the oil companies of Belarus, Ecuador and Chile emerged in July 2013. The alliance operates using consortium principles on the basis of the relevant trilateral cooperation agreement.

The Belarusian industrial group Belorusneft was founded in 1966. The company specializes in the surveying, prospecting and development of oil fields, well drilling, oil and associated petroleum gas extraction in Belarus and a number of other countries, including Russia, Ukraine, Venezuela, Ecuador, and some other ones.