QUITO, March 12 (Reuters) - The deadline for a
Chinese-Canadian consortium to pay a $1.5 billion upfront
payment to Ecuador in order to develop the country's most
productive oil block has passed, the energy minister said on
Wednesday, seemingly scuppering the deal.
President Daniel Noboa, who is seeking reelection in April,
had said the consortium, made up of subsidiaries of Chinese
state energy giant Sinopec and Canada's New Stratus
Energy ( RDRIF ), had until Tuesday night to make the payment and
that the deal would not go ahead without it.
The energy ministry awarded the
20-year contract
for the northeastern Sacha field - which pumped 77,000
barrels per day (bpd) last year - without a public bidding
process.
Unions, Indigenous organizations and opposition
politicians have criticized the awarding of the contract and
questioned whether Amodaimi Oil Company S.L., the Sinopec
subsidiary, and Petrolia Ecuador, the New Stratus subsidiary,
have the technical and operational capacity to operate the
block.
"There is nothing else to say, simply that the deadline
expired," energy minister Ines Manzano told local television
Ecuavisa on Wednesday morning.
The president has already said he will weigh other options
for the block if this contract did not go ahead. The government
has said it does not have the funds or the technology necessary
to increase production at Sacha.
Petrolia, the only member of the consortium who has
commented publicly on the deal, did not immediately respond to a
request for comment.
The contract included $1.7 billion in investment and a
plan to increase output from the field to 100,000 barrels per
day within the first three years.
The authorities had said that despite clauses which
would have determined production distribution based on the price
of oil and levels of extraction, government take from the
project's income, including the upfront payment, taxes and
charges for transport, would have been about 82%.