Ecuador Sacha oil field deal with ADNOC faces scrutiny

The Ecuadorian government is negotiating a service contract with the Abu Dhabi National Oil Company (ADNOC) to exploit the Sacha oil field in Orellana province. President Daniel Noboa stated the agreement involves a commitment of 4.855 billion USD in direct investment and an initial 300 million USD advance. The administration aims to increase production from approximately 70,000 barrels per day to 150,000 barrels per day through this 15-year contract, which could be extended by five years.

The deal has prompted calls for oversight from the National Assembly. Legislators have raised concerns regarding the transparency of the negotiations, questioning the specific composition of the consortium and whether the service contract model will yield higher or lower revenues for the state compared to current levels. Critics also expressed concerns about whether the field will continue to adhere to Ecuadorian environmental and legal standards.