QUITO, July 11 (Reuters) – Ecuador is preparing a tender for two oil blocks that have been temporarily handed over to state oil company Petroecuador, seeking a private operator to invest and boost production, the energy ministry said on Tuesday.

Oil blocks 16 and 67, located in the Amazon province of Orellana, were returned to Ecuador by a subsidiary of Canada’s New Stratus Energy, after contracts expired on December 31 and conservative President Guillermo Lasso refused to negotiate an extension.

Petroecuador resumed operation of the two blocks on January 1.

Although the blocks can produce up to 15,000 barrels per day (bpd), they are currently producing around 10,000 bpd, according to the Department of Energy.

“The region is very promising,” the ministry said in a statement posted on its Twitter account. “With investments and advanced technology, at the expense and risk of the entrepreneur, additional production is expected.”

The ministry did not provide further information on the international tender, but said it “is finalizing the details of the next tender.”

The announcement comes as the country prepares for snap presidential and legislative elections on August 20, after Lasso dissolved the National Assembly and shortened its term to avoid impeachment.

Petroecuador’s production has been affected by the effects of natural erosion in the Amazon region, power system outages in its fields and protests from communities surrounding its area of ​​operation.

Ecuador produced some 478,000 bpd on Monday, including the share of private companies, according to official data.

(Reporting by Alexandra Valencia, editing by Daniela Desantis)