Ecuador's Oil Production Recovers, Government Seeks Private Investment for Sacha Field

Ecuador extracted an average of 460,562 barrels of oil per day between January and August 2026. This represents an 8.1% recovery compared to the same period last year, when production was affected by the suspension of crude transport via the SOTE and OCP pipelines. The interruption of these pipelines, caused by regressive erosion of the Coca River, led to reduced extraction and progressive closure of oil wells in the Amazon primarily during July 2025, when national production plummeted by 64%.

Despite the recovery, current production remains below the government's goal of reaching 500,000 barrels per day in 2027. Petroecuador accounted for 79% of the national oil production, averaging 363,393 barrels per day, while private companies contributed 97,169 barrels per day, or 21% of the total.

The Sacha field (Block 60), operated by Petroecuador, was the top crude producer during the first eight months of 2026, averaging 71,536 barrels per day. This is a 5.6% increase from the 67,760 barrels daily extracted in the same period last year. To boost production, Sacha incorporated new wells, including Sacha-408, which reached a production of 1,205 barrels daily from an initial 114 barrels daily.

President Daniel Noboa stated on September 22, 2026, that several companies from the United Arab Emirates, including Petromal and Abu Dhabi National Oil Co (ADNOC), are interested in investing in the Sacha oil field. Noboa indicated that the Sacha field could potentially produce 250,000 barrels of oil per day. The government aims to reintroduce private participation in the country's most important oil fields after a process with the Sinopetrol consortium did not materialize in 2025. Sacha was directly awarded to Sinopetrol in February 2025, but the consortium did not fulfill an advance payment of USD 1.5 billion after President Noboa advanced the payment deadline. The Executive is currently re-evaluating how to incorporate private capital into the Sacha field, with mechanisms under study including a service provision contract, a strategic association, or a “swiss challenge.”

Petroecuador certified in 2026 that the proven (P1), probable (P2), and possible (3P) reserves of Sacha increased by 83%, from 350 million to 640 million barrels. However, the Transformación Energética group, comprising oil and mining sector experts, questioned this announcement, suggesting Petroecuador should provide a detailed technical explanation for the additional 290 million barrels.

What to watch

Monitoring the government's progress in attracting private investment for the Sacha field will be key, particularly the chosen mechanism for capital incorporation. The technical explanation for the significant increase in Sacha's certified reserves, as requested by industry experts, also warrants attention. The ability to meet the 2027 national production target of 500,000 barrels per day will depend on these developments and the sustained recovery of existing fields.

Sources: primicias.ec; primicias.ec.