The new contract allows Eni to continue its operations in Ecuador confirming the extension of the contract until 2023, with approximately 50 million barrels of oil still to be recovered.
The oil company said that it is based on a flat fee, which covers the costs of production and new investment, according to the new hydrocarbon law.
In addition, under the new agreement the area of Block 10 will be expanded to include a new prospective exploration area, which includes the Oglan oil discovery, located 7km from the Villano processing facility, with estimated oil in place of 300 million barrels of oil.
Eni has been operating the Villano field under a service contract with the state oil company Petroecuador since 2000, through its subsidiary Agip Oil Ecuador.
