Ecuador’s Petroecuador faces arbitration claims from two contractors

(Reuters) – Ecuador’s state oil company Petroecuador is facing arbitration claims stemming from contractual disputes with two private contractors, the company said on Friday, adding that the processes would not affect crude output.

Kamana Services and Servicios Petroleros Igapó separately presented claims stemming from disputes over services contracts signed with Petroecuador in 2016 to the Permanent Court of Arbitration, an international tribunal in The Hague, Petroecuador said in a statement.

Kamana is a consortium including Houston-based Schlumberger NV (SLB.N) and Argentina’s Tecpetrol SA, while Igapó includes U.S. oil services company Halliburton Co (HAL.N). Petroecuador did not specify the nature of the disputes, and the two consortiums could not immediately be reached for comment.

The proceedings will not affect the consortiums’ commitments under the service contracts nor Ecuador’s efforts to increase crude production from current levels of around 490,000 barrels per day (bpd), Petroecuador said in its statement.

“Petroecuador, to the extent that it can, is assisting the Solicitor General with the defense in these two cases, with the aim of reaching agreements of mutual benefit and for the good of the country,” the statement read.

Both consortiums signed the deals with Petroamazonas, another state oil company which has since been absorbed by Petroecuador, to boost crude output from mature fields in the Andean country.

Under the contracts, Ecuador would pay the consortiums a fee corresponding to increased production, while the companies made the investment required to improve the fields.

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