EP Petroecuador confirmed a few minutes ago that three new contracts entered into with Petrochina are already in force, within the renegotiation process of the Ecuadorian state company with Petrochina International Co. Ltd. These contracts that were signed on September 9, 2022 crude oil delivery conditions are updated.
According to Petroecuador, as a result of the renegotiation, the Ecuadorian State will benefit from the following:
The release of 27 shipments for 2022 and 2023, that will be placed on the market spot (daily market price), thus improving the level of income for each sale. The approximate income from these sales would be $709 million, calculated value at current conditions.
In addition, it was agreed deliver 80 additional loads at market price spotunder the new contracts that entered into force on September 9, 2022, which will allow the generation of $2.4 billion, in accordance with current price calculations, with a payment term of fifteen days after the date of unloading of the vessels.
A third point of the agreement renegotiation is that 192 cargoes of crude oil will continue to be delivered to Petrochina until 2027 under practically the same damaging conditions (up to $3.60 per barrel) with which the crude was being marketed with the Asian company, except for an improvement for freight (about 40 cents per barrel would be earned).
With this renegotiation, indicates Petroecuador, the company will be able to position Ecuadorian crude worldwide, promoting and executing commercial strategies to maximize income in favor of the Ecuadorian State.
The renegotiation is It had been carrying out since last April and one of the executives who carried it out was the recently dismissed manager of International Trade, Pablo Noboa. Just yesterday, Tuesday, September 13, Petroecuador reported that Monday the 12th had been dismissed and also warned that any communication in his name from the date of departure would not be valid.
Renegotiation conditions have been described by experts as lukewarm. Meanwhile, the president of the Supervisory Commission of the National Assembly, Fernando Villavicencio, said he did not agree with the conditions of the renegotiation. He believed that having been confirmed by the American justice system that bribes were paid through Gunvor and Vitol, to obtain these contracts with privileges that generated damages of more than $3 per barrel, “renegotiating these contracts is an immoral and illegal act.”
Villavicencio criticized that Petrochina with the renegotiation get more crude and thereby continue generating losses through intermediation. For the legislator, the Ecuadorian oil company should sign a contract with the model of Petroperú, that is, delivery of crude oil with the price spot and bound for refineries in Asia.
On another topic, Petroecuador also confirmed that who replaces Noboa is Reinaldo Armijos. Armijos introduces himself on social media as expert in foreign trade and generation of opportunities to export products to any part of the world. He has a company called Reiarm, which specializes in imports from China, without intermediaries. (YO)
Source: Eluniverso
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