Petroecuador urgently requires US$1bn, eyes refinery - Ecuador

Wednesday, January 24, 2007

Business News Americas

Ecuador's state oil company Pteroecuador urgently requires US$1bn to stabilize and improve production levels, Petroecuador's new executive president Carlos Pareja Yannuzzelli said in a company statement.

Although US$1bn is needed immediately, the company requires a total US$10bn for investments, including refinery developments, Pareja said.

The country aims to increase its 170,000b/d refining capacity in order to diminish reliance on imports of derivatives and Pareja expressed his belief a new refinery will be built in Manabí.

Petroecuador could develop a new refinery with its Venezuelan counterpart PDVSA under the cooperation agreement signed just after Ecuador's President Rafael Correa assumed power this month.

The new refinery would require four years to develop, according to the statement.

Ecuador imported 24Mb for US$2bn of derivatives in 2006. The country is due to spend US$2.3bn in 2007 on derivatives.

Petroecuador also must recover its financial and administrative autonomy from the economy ministry this year as oil resources go directly to the ministry, Pareja added.