By OGJ editors
HOUSTON, July 28 -- Venezuela´s oil company Petróleos de Venezuela SA has agreed to supply Ecuador's oil company, Petroecuador, with LPG, beginning next year, PDVSA announced.
Under the agreement, PDVSA also will provide legal and technical advice to modernize Petroecuador and modify Ecuador´s hydrocarbon laws.
Venezuela's Mines and Energy Minister Rafael Ramirez said, "The Venezuelan government and PDVSA are willing to provide legal, technological, and administrative assistance to other state-owned energy companies to unify marketing and distribution processes in the region."
PDVSA will supply Petroecuador with 500,000 tonnes/year of LPG, starting Jan. 1, replacing Petroecuador's current supplier, Dutch Trafigura Beheer BV. The Petroecuador-PDVSA contract is expected to save Ecuador $50million/year.
The companies also are studying the possibilities of building a natural gas pipeline and forming a regional oil company.