Alexandra Valencia -Petroamazonas to issue $350 mln bonds to help pay Schlumberger debt
Petroleumworld 10 20 2017
Ecuador's state oil company Petroamazonas said it will issue some $350 million in bonds to repay part of its debts with oil services company Schlumberger as part of a wider deal that also includes other payment decisions.
Petroamazonas accumulated debt with foreign suppliers as of 2015 in part due to lower oil prices. The company owes Schlumberger some $850 million.
“An agreement with Schlumberger was reached last week for the payment of the total debt ... In November we will issue bonds for $350 million,” Alex Galarraga, Petroamazonas' boss told reporters during a visit to the country's oil bloc known as ITT on Wednesday.
“Petroamazonas will issue bonds and several buyers will acquire the paper, and through Citibank the money will be delivered to Schlumberger,” he added.
Schlumberger did not immediately respond to a request for comment.
The agreement also includes payment of $250 million in monthly installments as of next January for two years, at an interest rate of around 4 percent.
The remainder of the debt will be covered in cash and in central bank notes, known by the Spanish acronym TBC.
Ecuador recently negotiated a new fee for service with Schlumberger in an oilfield in the jungle.
; Writing by Alexandra Ulmer from Reuters.
reuters.com 10 19 2017
We invite all our readers to share with us
their views and comments about this article.
Write to email@example.com
By using this link, you agree to allow PW
to publish your comments on our letters page.
Any question or suggestions,
please write to: firstname.lastname@example.org
Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels