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Ecuador-Venezuela energy agreements still lack details: minister
By Carla Bass
Platts
Quito
Petroleumworld.com 05 31 06
Whether Ecuador takes advantage of energy and refining agreements to
be signed Tuesday with Venezuela depend on a later economic analysis, Energy
Minister Ivan Rodriguez said."First we sign the agreements, then we decide the technical details,"
Rodriguez said outside an energy conference Tuesday. "Obviously, we will only
proceed if this benefits the country."Venezuelan President Hugo Chavez arrived in Ecuador Tuesday morning and
is to first meet with President Alfredo Palacio before signing the two energy
agreements. He is to return to Venezuela Tuesday afternoon.One agreement would be for Venezuela's state PDVSA to refine up to
100,000 b/d of Ecuadorean crude in PDVSA's leased refinery on the Caribbean
island of Curacao. The second would be to promote joint efforts
in oil, gas and electricity between the two countries.The crude to be refined would probably be the lighter Oriente, Rodriguez
said. However, the 100,000 b/d of heavier Napo crude state Petroecuador is now
producing in Occidental Petroleum's former Block 15 could also be considered
if adjustments are made to the refinery, he said.Ecuador May 15 canceled Occidental production contract and seized its
fields over a breach of contract dispute. Rodriguez Tuesday defended the
seizure, adding it was unrelated to the planned agreements with Venezuela.The agreement to refine part of Ecuador's crude in Venezuela at cost
would save Ecuador about $300 million/year in fuel imports, which reached $1.8
billion in 2006, officials estimate.--Carla Bass, newsdesk@platts.com
For similar news, take a trial to Platts Oilgram News at
http://oilgramnews.platts.com.
Platts 30 05 06
Copyright ©2006 Platts. All Rights Reserved.
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