QUITO, March 3 (Reuters) - A consortium made up of subsidiaries of Chinese state energy giant Sinopec (600028.SS) , opens new tab and Canada's New Stratus Energy (NSE.V) , opens new tab has been awarded a 20-year production sharing contract for Ecuador's most productive oil block, New Stratus Energy said in a statement on Monday.

New Stratus said the deal includes an upfront cash entry bonus of $1.5 billion, $600 million of which it will pay.

The government has said it does not have the funds or the technology necessary to increase production at the Sacha block, which is one of the country's oldest. The block produced about 77,000 barrels per day in 2024.

"In addition to the entry bonus, the consortium has agreed to invest amounts in excess of $1.7 billion during the initial term to finance a development plan approved by (the energy ministry)," New Stratus said.

The ministry had previously named the subsidiaries as Amodaimi Oil Company S.L., a subsidiary of Sinopec and Petrolia Ecuador, a subsidiary of New Stratus.

The energy ministry is expected to hold a press conference on the deal later in the afternoon.

Authorities have defended direct negotiations with the consortium, instead of a public bidding process, saying the law allows direct negotiations with state-owned companies.

The government in January presented several energy projects it said will need $42 billion in foreign investment in the next five years.

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https://www.reuters.com/business/energy/ecuador-awards-20-year-production-sharing-contract-new-stratus-energy-sinopec-2025-03-03/