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CNPC in Ecuador

CNPC has been present in Ecuador since 2003 and has oil and gas assets and equity in the country, while providing oilfield services.

  • Oil and Gas Operations
  • Oilfield Services & Engineering
  • Local Development
  • Major Events

Andes Project

In September 2005, CNPC and Sinopec jointly purchased oil and gas assets and development rights and interests of five blocks owned by Encana in Ecuador, and established Andes Petroleum Ecuador Ltd, with CNPC holding a 55% share.

In February 2006, Andes Petroleum took over the rights to explore and develop five blocks with a total area of 5,668 square kilometers in the east of the Oriente Basin. By enhancing reservoir analysis and management in mature oilfields, infilling adjustment wells, working-over production wells, and rationally arranging maintenance, we maintained stable production for several years.

In 2009, in order to curb production decline, the Andes project increased the application of advanced technologies and strengthened reservoir management, and achieved significant results, with the output of horizontal wells accounting for 40% of the total.

In 2010, Andes Petroleum converted its PSC into service contracts. We saw the successive birth of high-yield wells in the Tarapoa block, aided by the study of the patterns of reservoir-formation, fine reservoir description, and the distribution of remaining oil. When these new wells were put into production, the preliminary stage test results showed a remarkable average output of more than 900 barrels per day. We also introduced dual well completion and other state-of-the-art and proven oilfield production processes and technologies, and fulfilled the objective of stabilizing oil production.

Andes Petroleum improved the result of new and stimulated wells by innovatively applying our unique matching technologies. Its crude production was well underway and new contract blocks showed promising prospects. On October 10, 2011, the company received the “Excellence in Petroleum Technology Development” award from the Ecuadorean Ministry of Non-renewable Natural Resources and the International Society of Petroleum Engineers (SPE) in reward of its horizontal well completion technology in high-water-cut mature oilfields with discrepant seepage fields in complex and subtle traps.

In 2011, Andes Petroleum achieved a reserve replacement rate of more than 100% for the first time at the old oil zone, with the output of new wells accounting for 12% of the oilfield’s total.In 2012, the Andes project's output reached 2.6347 million tons of oil equivalent.

In 2013, Andes Petroleum continuously stabilized output at ultra-high-water-cut oilfields by stimulating mature wells and speeding up commissioning of new wells.

In 2014, a potential reserve of 100 million tons of oil was discovered in the east-central part of Block T of the Andes project.

In 2015, we revealed potential in new bed series for the first time in the west of Block T of the Andes project.

In 2016, the Andes project saw the completion of 600Kt/a capacity building at the Johanna East Oilfield, signed exploration contracts on Block 79 and Block 83, and extended the service contract for Block 14 to 2025.


CNPC provides geophysical prospecting, drilling, logging and testing services in Ecuador.

CNPC Chuanqing Drilling Engineering Company (CCDE) mainly provides well drilling, completion and workover services to Petroecuador, in a bid to further enhance oil recovery efficiency of the fields located in the 亚马逊 area. In SACHA Oilfield’s turnkey project in Ecuador, CCDE delivered impressive performance by improving its applicable technologies and optimizing its drilling tools. Six of the eight completed wells obtained high yield, with the highest single well output reaching 8,000-9,000 barrels per day. Well SACHA-331D was completed within 18.5 days, the record short single well drilling cycle.

Pacific Refinery

On June 6, 2013, CNPC signed a framework agreement on integrated cooperation in the Pacific Refinery and upstream development with the Coordinating Ministry for Strategic Sectors of Ecuador, the Ministry of Finance of Ecuador, Petroecuador and the local 亚马逊 Company. Under the agreement, CNPC will take a share in the construction of the Pacific Refinery project.

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Andes Petroleum attaches great importance to operation and environmental safety. No serious production or operational accidents have been reported since the takeover. The EHS indexes (RIS) increased from 0.69 in 2006 to 0.84 in 2007, establishing Andes Petroleum as an industry standard benchmark in Ecuador. The company was rated among the top three winners of the 2007 World Petroleum — Environmental Protection & Sustainable Development Award by the World Petroleum Organization.

New technologies are encouraged and promoted. The environmental impact resulting from land requisition and emissions has been minimized by applying horizontal drilling in old well sites, secondary extraction in high-energy reservoirs and short-route wastewater re-injection. These approaches and practices have been applauded by Petroecuador and the local industry.

The company conducts a range of programs specifically intended for the benefit of local people, including the Andes Cocoa Garden, a mobile medical team and school buses. In addition, we promote the growth of the local economy by introducing planting techniques and giving financial support to public services, i.e. medical services, health and education. Meanwhile, an employment program has been initiated to create 1500 jobs for surrounding communities. According to local media, Andes Petroleum has been highly praised by Ecuador's Ministry of Internal Affairs, Ministry of Energy & Mines, and Petroecuador, as a good example of handling local affairs. According to people in the northern region, Andes Petroleum is the first foreign company in the history of Ecuador offering sincerity and friendship to local people.

Andes Petroleum has established a multinational workforce to sustain the company’s long-term and stable growth. Local employees now account for 95% of the company’s payroll, with their proportion in managerial, technical and operational positions reaching 95%, 90% and 100% respectively. So far, nearly 100 local employees have been promoted, achieving personal growth along with the development of the company.

In 2013, Andes Petroleum adopted whole-process environmental protection management to eliminate pollution. We monitored the ecological environment before drilling new wells or building new temporary camps, in order to provide standards for ecological restoration after operation. Additionally, the geographic information system was used to effectively reduce the impact of field development on the environment and communities.

Educational and Medical Assistance for Young People

Andes Petroleum actively supports youth programs focusing on healthcare, skills training and fostering social values, helping young people to plan their future development. By working with the Padre José Kentenich Foundation, Andes Petroleum provided financial support in training, food, education and healthcare services, covering more than 280 local children aged from three to 12. Through the “Pan Ecuador” Foundation, Andes Petroleum offered vocational training for 75 disabled young people, and provided strong support to their efforts to gain job opportunities. From 2007 to 2011, Andes Petroleum also provided scholarships for 50 local young people, including five college students. During the past six years, the company has offered assistance in building seven kindergartens, 41 primary schools, three middle schools, and two technical schools.

We provided school buses in Tarapoa and surrounding communities. We funded the construction of 200 “Millennium Schools”, building classrooms and libraries, jointly with the Chinese government.

Disease Prevention and Treatment

The two community clinics built by Andes Petroleum provide year-round mobile care services, medical education and instruction, and disease prevention and treatment services, benefiting 5,000-8,000 local residents. Besides, Andes Petroleum supports innovative programs on disease prevention and treatment. By cooperating with the Por Una Vida Foundation, it has provided free medical treatment to more than 400 children afflicted with blood disorders. By offering financial support to the Virgen de la Merced Foundation, it has provided education, care and rehabilitation services to more than 70 children aged between two and 12 from low-income families who suffer from cerebral palsy and stunted intellectual development. In 2010, through the "Life" and "Smile Action" Foundations, the company donated RMB 460,000 to the Quito Child Welfare Institute to fund the medical treatment of 293 children with leukemia and 399 children with physical defects from low-income families.

Support for Community Capacity Building

Andes Petroleum attaches great importance to community capacity building, and strives to offer continuous support to relevant community projects, helping local residents improve the quality of their lives. Fundación ALDEC (Alliance for the Development, Education, and Welfare of Street Working Children) is a highly influential NGO in Ecuador. Andes Petroleum started donating USD 7,500 annually to ALDEC in 2006 to support its "food sharing" program, providing meals and medical support for school children from poor, inner-city families in Quito. Due to the impact of the European debt crisis in recent years, many Ecuadorian people working in Europe lost their jobs, whose children suffered from lower incomes but benefited from this program. Cooperation with Fundación ALDEC has enhanced Andes Petroleum’s responsible image among Quito residents.

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Jun. 6, 2013 A framework agreement on integrated cooperation in the Pacific Refinery and upstream development was signed with Ecuador’s Coordinating Ministry for Strategic Sectors, Ministry of Finance, PetroEcuador and the local 亚马逊 Company. Under the agreement, CNPC will take a share in the construction of the Pacific Refinery project and participate in the exploration and development of Ecuador's upstream resources.

Oct. 10, 2011 Andes Petroleum received the “Excellence in Petroleum Technology Development” award from the Ecuadorean Ministry of Non-renewable Natural Resources and the International Society of Petroleum Engineers (SPE)

Nov. 2010 Andes Petroleum converted its PSC into service contracts.

Feb. 2006 Andes Petroleum took over the rights to explore and develop five blocks in the east of the Oriente Basin in Ecuador.

Sept. 13, 2005 CNPC and Sinopec jointly purchased oil and gas assets and development rights and interests of five blocks owned by Encana in Ecuador, and established Andes Petroleum Ecuador Ltd (Andes Petroleum), with CNPC holding a 55% share.

Aug. 29, 2003 CNPC signed a Petroleum Cooperation Agreement with the Energy and Mine Ministry of Ecuador and Petroecuador in Xi'an, Shaanxi Province.

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