BY SIMON HALL
BEIJING CNPC expects to firm up a draft pact by end
2013 to join a major refinery project in Ecuador and expand its
oil exploration efforts there, CNPC said.
CNPC Chairman Zhou Jiping had signed a framework agreement
with Ecuador's Coordinating Minister for Strategic Sectors and
Petroecuador's President, under which CNPC "will take a share
in the construction of the Pacific Refinery project and participate in the
exploration and development of Ecuador's upstream
"Further negotiations will be carried out on the basis of
the agreement, and the cooperation contract is expected to be
signed within the year," CNPC said in a statement on its
website. It didn't give details of its planned equity state or
CNPC, which produces more oil and gas than any other Chinese
company, already owns four oil and gas blocks in Ecuador.
In January, Ecuador's Coordinating Minister for Strategic
Sectors Rafael Poveda told Dow Jones Newswires that talks were
under way for CNPC to take a 30% stake in the 300,000 bpd
Refineria del Pacifico project, in which Petroecuador owns
51% and Petroleos de Venezuela the rest.
If an agreement with CNPC is reached, 30% of the funds
needed to build the refinery will come from the three
partners. The rest will be financed by a group of Chinese banks
headed by the Industrial & Commercial Bank of China, Poveda
said at the time.
China has become the largest source of financing for the
Andean country since Ecuador defaulted on its global bonds in
Ecuador produces just over 500,000 bpd and hopes to expand
this to 525,000 bpd by the end of the year.
Dow Jones Newswires