August 31, 2005
PDVSA and Petroecuador will sign crude supply MOU

(BNamericas.com) - "Venezuela's state oil firm PDVSA expects to sign a memorandum of understanding (MOU) with its Ecuadorian counterpart Petroecuador on the first week of September to supply a total 2.07 million barrels (Mb) of crude and pier 2 products, a PDVSA source told BNamericas.

PDVSA had agreed last week to supply 660,000b of crude in two shipments in September but that amount has been increased due to Ecuador's requests for more oil, the source said. Ecuador had originally asked for 5Mb of medium-light crude over a period of four months.

However, the companies must first agree on the repayment method, whether in cash or in crude once Ecuador's normal production resumes, and whether PDVSA has enough crude available to commit to a first delivery in September, the source said (...)

A top-level Ecuadorian government delegation including energy and mines minister Iván Rodríguez met with officials from PDVSA's trade and supply and legal departments in Caracas last week to discuss the oil supply agreement".