New investments have been confirmed at Libertador and Shushufindi alongside extended contract terms, marking a milestone that reflects strong teamwork and opens the door to new opportunities in the area.

Our people in Ecuador are celebrating another triumph as, after months of demanding negotiations, the concession contracts for Libertador and Shushufindi operations have finally been extended for another five years. Even though the contracts were not set to expire until 2030 and 2032, the sheer scope of the agreement underscore its significance.

“Continuing to invest in Ecuador reflects Tecpetrol’s recognition of the solid performance delivered under these contracts, involving all areas and stakeholders,” said Francisco Do Pico, Ecuador Country Director. “It also represents a strong commitment by the company and its partners to future project execution, along with a clear vote of confidence from the State, through our customer Petroecuador. This is something we can all take pride in.”

Tecpetrol’s new contract with Petroecuador to operate the Libertador field includes a five-year extension. “Extending the term from 2030 to 2035 was certainly important, but what really matters are the productive investments, which confirm that Libertador still has development potential worth exploring,” said Michielle Zurita, Commercial and Planning Manager.

“It was a two-part negotiation process,” explained Alberto Narváez, Operations Senior Manager for Libertador. “The first challenge was identifying productive investments, meaning defining a portfolio of wells and facilities—a process that doesn’t always unfold exactly as planned. Along the way, we had to make adjustments. What ultimately worked in our favor was the company we’ve built over the years: our track record in social engagement, production, and safety played a key role in the negotiations.”

“The investments secured mean that we can maintain the pace of activity achieved in recent years, with strong expectations that the results will open the door to further expansions down the line,” said Francisco do Pico. “Extending the contract term gives us a longer horizon to make new investments profitable and fully capture potential improvements. At the same time, strengthening our presence in the country creates new opportunities to continue growing through additional business.”

A vote of confidence

In the Shushufindi consortium, Tecpetrol’s contract—in partnership with operator SLB—was also extended by five years, through 2037. “This is the second term renegotiation since 2018, which gives us more time to continue investing and maximizing production at the Shushufindi and Aguarico fields,” explained Sebastián Galli, Senior Commercial & Planning Manager, speaking from Quito.

“We set ourselves an ambitious and challenging goal,” he added, “but we were able to agree internally within the consortium on a solid plan before presenting it. In the end, it proved to be a project that delivers value for both parties.”

The project was backed by every team and area within the Shushufindi consortium. “For a year and a half, the entire company was involved in reaching an agreement that worked for all parties,” Sebastián summarized.

“From the very beginning, we had to navigate a number of technical and economic challenges, as well as broader contextual factors, both in Ecuador and internationally, including a drop in global prices,” reflected Francisco, who leads the area where the company has now been operating for more than 25 years. “What really made the difference was teamwork across Tecpetrol globally, with strong coordination between the teams in Ecuador and Buenos Aires, all the way through the final approval process, and a high level of commitment from everyone involved.”

With this latest achievement under their belts, the team celebrated in true Argentine style with a barbecue at an estancia and music to match. “It’s a major milestone for the company, and something we’d been very keen to secure,” added Sebastián.

Looking to the future, Jorge Ramírez, Conventional Development Director, reflected on the potential still ahead, pointing out that, “Although Libertador and Shushufindi are at different stages of development and maturity, new investments under both contracts continue to offer significant potential to create value for the company.”