Exploration and Production Perez Companc and Cayman Oil recently have been successful in exploration efforts in Ecuador's productive Oriente region. Other companies, however, are leaving Ecuador. The Japan National Oil Corporation made public in August 1999 its decision to pull out of the country. Italy's Agip, a consortium member in Arco's Ecuador production, took over as operator in Arco's Villano field. In July 2000, CMS Energy sold its Ecuadorian assets to Crestar Energy of Alberta, Canada.
Natural gas associated with oil production is flared.
Consequently, there is no gas market of any significance in Ecuador. This could change, however, with the development of gas fields in the Gulf of Guayaquil and the eastern Oriente region. Roughly half of the country's electricity comes from one hydroelectric plant, Paute. Ecuador's power demand is growing rapidly, but generation capacity and transmission and distribution infrastructure are having trouble keeping pace. All will be privately financed.