New Stratus Energy (NSE) has dissolved its joint venture (JV) for four onshore oilfields in Venezuela but can reclaim its stake after two years. Meanwhile, NSE and Sinopec have secured production and exploration rights for an Ecuadorian block with a significant oilfield. The Venezuelan JV involved a 40% indirect stake in Vencupet SA via GoldPillar International, while PDVSA holds the remaining 60%.In January 2024, NSE joined Desarrolladora de Oriente Oil & Gas (DOOG), acquiring a 50% indirect stake in GoldPillar (GP) and becoming an investor in six idle Venezuelan oilfields.
The fields, inactive since 2015 due to lack of investment, were part of a development plan where GP would fund rehabilitation, with PDVSA repaying through crude shipments. NSE announced the JV’s dissolution but retains the option to reclaim its stake after two years.NSE has fully relinquished its stake in DOOG at no cost and forgiven $4.1 million in shareholder loans.
All agreements and obligations have been terminated, except for potential compensation to GP’s principal shareholder if certain costs aren’t recovered from PDVSA within 14 months. NSE retains the right to negotiate reacquisition of its stake in DOOG and Vencupet for two years.NSE and Sinopec have signed a shareholding agreement for a production sharing contract (PSC) for Ecuador’s Sacha Block (Block 60), taking over from Petroecuador.
NSE will hold 40%, while Sinopec will own 60%. The consortium will pay a $1.5 billion entry bonus and expects to finalize the PSC this month, pending approval from the Toronto exchange. Sacha, spanning 355 sq. km, produced 77,191 bpd in 2023, with plans to boost output to over 105,000 bpd by 2029.
The PSC will have an initial 20-year term, with the consortium receiving a production share (X Factor) based on a sliding scale tied to the Oriente Blend price, which tracks WTI. At a WTI price of $65 per barrel, the government is expected to take 18% of production, leaving the consortium with an 82% share.
