Petroamazonas EP (PAM EP) is an Ecuadorian national oil exploration and production company. It started its operations in 2007 in Block 15 of the Ecuadorian Oriente Basin, producing an average of 88,173 barrels of oil per day (bopd), and reflected a market participation of 18 percent.
Nowadays, Block 15 is producing 103,000 bopd, and due to its efficient operation during 2007, 2008 and 2009, the Ecuadorian State has also assigned the operation of Blocks 7, 21 and 18 to PAM EP.
Currently, the company produces an average of 160,000bopd, which is 33 percent of the total national oil production, making it the oil company with the largest oil production in Ecuador.
During the period 2007-11, PAM EP maintained the lowest operating costs in the Ecuadorian market, and has efficiently used its resources, striving to develop the most important capital investment projects (approximately $2,800m during this period) which allowed the company to substantially increase its oil production and directly generate greater oil revenue.
Among PAM EP’s main investment projects are: (1) the Pañacocha Project, which incorporated a production of 18,100 bopd, and has been recognised for its high environmental standards used during the facilities construction and operation; and (2) the electric power generation optimisation project (OGE in Spanish), which allows the use of associated gas for power generation, reducing the oil operating costs, and saving important economic resources to the country by avoiding the use of diesel. In addition, this project brings important environmental benefits, by reducing CO2 emissions to the atmosphere.
PAM EP is also in charge of the development of Block 31, for the exploitation of the Apaika and Nenke fields. Their first oil production is expected in July 2013.
As part of PAM EP’s strategic growing plan, the company is working on the development of several blocks in the south-east of the Ecuadorian Oriente Basin, where there are very high probabilities of increasing the oil reserves to 110 million barrels.
The company is also working in the implementation of enhanced oil recovery techniques to enhance the recovery factor for fields currently in production, and also increase the reserves and production of the block administered by PAM EP.
PAM EP’s main factors of success are its management and administration structure, which highlight its corporate culture and human talent, rigorous internal control systems, modern technological systems, consolidated support processes for operations and administration activities, codes of ethics and transparency, stability and growth at top management levels, and a strong focus on safety, environment and social responsibility.
All of the above have allowed the company to work with the approval of the highest authorities of the country, and due to the important growth of PAM EP during the last four years, it will take over all state-owned upstream operations, becoming the only upstream national oil company in the country, with approximately 64 percent of the Ecuadorian market participation.
Due to Petroamazonas EP’s strength and knowledge of the Ecuadorian upstream petroleum business, the next step for the company will be to seek opportunities to expand its operations to other countries.