New loan for Ecuadorian energy sector

(Caracas, September 10, 1993). – A US$38 million loan for execution of a hydrocarbon production program in the Anaconda, Palanda and Pindo oilfields, located in the northeastern Sucumbios province was granted today to Empresa Estatal Petróleos de Ecuador (PETROECUADOR).

A subsidiary of this company, PETROAMAZONAS, is the executing agency of the project, whose purpose is to increase oil production by around six million barrels for several years before declining.

The project covers drilling of eight development wells in Palanda, eight in Pindo and one in Anaconda. The total cost is US$64 million, of which 60% will be financed by CAF and the rest by PETROECUADOR.

The PETROECUADOR investment plan for 1993-97 totals US$1.20 billion and is assigned high priority by the Ecuadorian State because oil revenue finances a large proportion of the national budget and generates most of the foreign currency.

The agreement was signed in the CAF headquarters in Caracas by CAF President & CEO Enrique García and by the Ecuadorian Ambassador in Venezuela, Ximena Martínez de Pérez.