Ecuador Sacha oil field investment controversy

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 a 15-year contract, with a possible five-year extension.

This deal has faced scrutiny from the National Assembly. Legislators from the Revolución Ciudadana party, including Nanki Saant and Juan Andrés González, have announced plans to investigate the agreement. They expressed concerns that the deal could compromise national sovereignty, reduce state revenue for public services, and undermine the Amazon Law, which prioritizes local employment and businesses.

Critics have characterized the agreement as a threat to national heritage, with González alleging that the deal could allow wealth to be transferred to transnational companies and tax havens. Additionally, the Confederation of Kichwa Peoples of Ecuador (Ecuarunari) has requested greater transparency regarding the terms and intended beneficiaries. Legislators and critics have also questioned whether the service contract model will yield higher or lower revenues for the state and if the field will continue to adhere to Ecuadorian environmental and legal standards.