Venezuela, Ecuador sign oil deals

Peter Howard Wertheim
OGJ Correspondent

RIO DE JANEIRO, June 7 -- Venezuela President Hugo Chavez has signed refining and technical assistance contracts with Ecuador President Alfredo Palacio.

Venezuela will refine as much as 100,000 b/d of crude from Ecuador under favorable terms, which officials say will save Ecuador at least $300 million/year.

Venezuela also will provide technical advice to state-run Petroecuador.

Ecuadorean officials have said the agreements are economic and do not indicate a political alliance with Chavez.