Ecuadorean oil and gas sector is undergoing a period of intense restructuring and regulatory shifts aimed at reversing production declines.
The Ecuadorean government projects that crude output will hit a peak in 2026, potentially exceeding 600,000 barrels per day (bpd). However, this comes after Petroecuador entered the year facing significant hurdles due to a tumble in output and investment throughout late 2025.
Energy Minister Inés Manzano recently highlighted a plan to attract $42 billion in oil sector investments through 2029 to boost production across state and private fields.
The government, through Petroecuador, is moving to double natural gas production at the Amistad Block. This phase includes drilling four additional wells to reach a projected 90 million cubic feet per day by 2027, aimed at substituting diesel imports for power generation.
A 20-year production sharing contract for the strategic Sacha field (often called the “crown jewel”) was recently awarded to a consortium led by Sinopec and New Stratus Energy.
Gran Tierra Energy Discoveries: Gran Tierra Energy has successfully drilled five consecutive exploration wells, identifying significant potential for medium-to-light hydrocarbons in the Charapa and Chanangue blocks.
Infrastructure & Logistics
Export Markets: Indian Oil recently purchased 2 million barrels of Ecuadorean oil via tender, indicating continued demand from Asian markets.
Regulatory Path: New reports from BNamericas indicate that Ecuador is charting a new regulatory path for the energy sector to improve transparency and attract stable private capital.
Refining Issues: Petroecuador continues to manage the fallout from emergencies at its largest refineries, including a fire-related emergency at the Esmeraldas refinery declared in mid-2025.
Trade & Diplomacy
UAE Trade Deal: The UAE is finalising a Comprehensive Economic Partnership Agreement (CEPA) with Ecuador, which is expected to boost non-oil trade by 45% in 2026, though energy cooperation remains a central pillar of the bilateral relationship.
Note by Alessandro Bazzoni