Daily Management Review

Top Oil Companies Bids For Ecuador Oil Contract


Top Oil Companies Bids For Ecuador Oil Contract
Several of the top oil producers of the world including Royal Dutch Shell, Mitsubishi Corp and Trafigura, are fighting it out to get a share of contracts to buy oil from about an estimated 20.2 million barrels of crude oil from Ecuador between 2020 and 2023.  
Announcing this, the country’s energy minister Jose Agusto told reporters that Ecuador will be choosing the beets bid for the oil contracts and expects that the oil hauled out will bring in as much as $950 million in export revenues in the coming days for the country.
In the first such auction organized in more than a decade in the country, the government of Ecuador sought bids form 51 companies at an auction for the oil. The minister said that the price of the oil will be decided on the basis of the price of oil sales of the country and the price on the spot market plus a premium.
According to state oil company Petroecuador, the highest bid at the auction was placed by Shell through its Shell Western Supply and Trading Unit.
Four shipments of 360,000 barrels each of Oriente-grade crude in 2020 and 2021 will be made to the winner of the bidding under the contract. 24 shipments of the same amount per year will be delivered by Ecuador to the contract winner in 2022 and 2023.
A total of about 545,000 barrels per day of crude is produces by Ecuador.