Andes Petroleum Ecuador Ltd. celebrates 17-year operations in Ecuador

The multicultural team of Andes Petroleum Ecuador Ltd.

Together with its shareholders, the China National Petroleum Corporation (CNPC), making up 55%, and Sinopec, making up 45%, Andes Petroleum Ecuador Ltd. celebrated 17 years of successful hydrocarbons operations in the northern part of the Ecuadorian Amazon region.

In 2022, Andes Petroleum Ecuador invested $115.9 million, resulting in the production of 38,059 barrels per day, and a total production of 13,891,381 barrels by implementing a joint strategy between the company and its contractors that optimized activities to maintain expected production margins. Workovers, electric submersible pumping, and swabbing schedules were increased, along with fracking, zone changes and artificial lift campaigns. A compact multicultural, highly professional and experienced team was and remains largely responsible for this task, which has solidified the position of the company as a leader in the national oil industry. Total taxes and contributions paid to the country from 2006 to 2022 total $9.9 billion.

Sunset at the Amazon

The company works in the Amazon region, which is home to some of the most delicate ecosystems in the world. Consequently, operations are undertaken with the greatest care. In 2022, it carried out an ambitious revegetation project in intervened areas where the soil is exposed, with the aim of preventing erosion in those areas.

It also ramped up the remediation efforts of liabilities existing prior to operations, in compliance with environmental regulations. The company has carried out hundreds of inspections with environmental authorities, through which the high standards that it follows have been verified.

This is how direct mandates from the headquarters of both the CNPC and SINOPEC are carried out, not only in terms of unrestricted respect for nature, but also the integrity of the surrounding communities and work teams. Contractors that work with the company have also received this mandate, and understand that it must be observed unconditionally. The company carries out periodic audits to ensure that these mandates are being followed.

The company’s interaction with surrounding communities is positive. In 2022, of more than $75 million in material purchases, and $73 million were made locally. The company has signed contracts for $ 152 million, of which $151 million are with local suppliers, and $17 million corresponds to contractors from the Amazon region itself.

Its operation has created thousands of indirect jobs and benefits for the 260,000 people who live in provinces in which work is carried out.

School kits contribute to communities

The company's support for reconstructive facial surgeries

Investment in projects with indigenous and settler communities continued in 2022, as well as contributions to community health clinics, medical equipment, school kits, Christmas gifts and humanitarian aid. Almost 10,000 medical appointments were registered in two healthcare centers supported by the company, effectively serving surrounding communities. These communities are located in the heart of the jungle, far from the larger urban centers in eastern Ecuador.

Regarding local employment, the company exceeded the requirement of at least 70% of the workforce being local, as established in national legislation: currently, 85% of personnel are from areas where it operates.

In 2022, the company resumed in-person activities, once the Covid-19 infection parameters were dropped. However, it has rigorously observed all anti-Covid protocols both for administrative tasks in the city of Quito and for field operation activities.

Its multicultural team has been assembled for 17 years on the basis of being proactive and receiving constant training, so much so that in 2022, a total of 50,000 man/hours were spent on training.

The company permanently supports the training and development of its local employees, not only to maintain productivity standards, but to also involve them in the processes, procedures and objectives of the organization. It also enables them to acquire the knowledge and skills that they need to be more effective in performing their tasks.

Rig at Mariann

In 2022, its Corporate Social Responsibility programs continued with the implementation of multiple recycling programs, involving the participation of many team members in the collection of PET material which, when sold, provided resources for a non-profit organization to perform reconstructive facial surgeries for underprivileged children. Volunteer programs that focused on reforestation tasks, providing assistance to underprivileged groups, and projects aimed at preserving the physical and mental health of employees, remains in effect.

The company’s commitment to the development of Ecuador is ratified daily in each of its actions; as such, it is living proof of the actions behind the fruitful relationship of brotherhood between Ecuador and the People's Republic of China.

Andes Petroleum Ecuador leading in harmony.