OPEC to support Ecuador refinery call

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Wednesday, February 7, 2018

Ecuador's government has secured backing from OPEC to help structure the procurement process to advance development of the Manabí refinery project.

The hydrocarbons ministry made the announcement following a meeting between minister Carlos Pérez and the oil cartel's secretary general Mohammed Barkindo in Quito. The OPEC head also met with President Lenín Moreno.

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The support aims to implement best practices in the BOT contract model for the project.

An event in recent days to promote the refinery included the participation of Goldman Sachs, Bank of Tokyo-Mitsubishi, Repsol, JP Morgan and China Development Bank.

With regard to oil production limits adopted by OPEC last year, Pérez said "the agreement until now has been positive," and that OPEC will decide at its June meeting whether to continue the output caps.

The minister added that if prices continue to recover, there would be no need to increase daily production.

In a related note, a delegation from Ecuador's foreign trade and investments ministry will travel to Washington DC on Thursday to meet with the United States Trade Representative to discuss the reactivation of the US-Ecuador Trade and Investment Council.

YASUNÍ

And with regard to increased protection for the Yasuni national park, the government expects to implement the expansion of the protected zone in six months, government news service El Ciudadano reported.

The ministries of hydrocarbons, justice and environment will establish a technical commission to determine specific coordinates and submit the proposal to the president, Pérez was quoted as saying.

Read Ecuador votes to reduce Yasuní oil area