Eric Watkins
Senior Correspondent
LOS ANGELES, Feb. 25 -- Ecuadorian President Rafael Correa, while accepting drilling services offered by Venezuela at a discounted rate, has hailed his country's oil and gas "integration" with its South American neighbor.
State-owned Petroecuador will use two Venezuelan rigs, one of which is drilling the Guanto Dureno well in the province of Lago Agrio. The other is to arrive next month.
Petroecuador and Petroleos de Venezuela SA also will establish a joint company for development of Sacha oil field and in June will begin construction of a 300,000-b/d refinery in the province of Manabi.
The Ecuadorian leader cited the support of Venezuelan President Hugo Chavez in offering the two oil rigs and accompanying technicians at a discounted rate, covering all expenses for maintenance, operations, and administration.
Correa said the rig's rental came to $8,000/day, compared with what he called the international market rate of $30,000/day. He also pledged that Petroecuador's crude oil production would eventually increase to 190,000 b/d from 173,000 b/d.
Contact Eric Watkins at [email protected].
