Ecuadoran envoy praises Pertamina's oil agreement with PetroEcuador

The Jakarta Post ,  Jakarta   |  Mon, 07/09/2007 11:07 AM

The Jakarta Post, Jakarta

Ecuador's Embassy in Jakarta on Friday welcomed the increasing cooperation between PT Pertamina and PetroEcuador in the oil sector.

Last week the state oil companies signed an agreement in Quito, the capital of Ecuador, to conduct a study on the rehabilitation of several oil wells as well as exploration of new blocks.

""Pertamina has so far sent several delegations to Ecuador to increase cooperation between the two companies. Last week Pertamina's delegation was in Quito to sign the agreement. We are happy about this development,"" the embassy's charge d'affaires, Carlos Lenin Housse, told The Jakarta Post on Friday in Jakarta.

Under the agreement, Pertamina will conduct a study on the development of the Oglan oil field and the rehabilitation of several oil wells in Ecuador.

Housse said Indonesia and Ecuador signed a memorandum of understanding (MoU) on cooperation in energy and mining on July 14, 2004. As a follow-up to this understanding, both state oil firms signed a Strategic Alliance and a Non-Disclosure Agreement.

""It (the agreement) will allow them to continue and materialize the cooperation in order to contribute to the effective and ecological use and administration of their resources and natural wealth,"" Housse said.

He was optimistic that the cooperation would benefit both countries.

""We have no doubt that the implementation of these joint tasks in this extremely important sector will bring benefits to our people and will give the opportunity to enhance other areas of cooperation regarding the best interests of the two countries and their development.""

According to Bloomberg newswire, Ecuador plans to invest US$234 million this year in the oil sector in order to achieve a production target of 185,000 barrels of oil per day by the end of this year, or a 9 percent increase from the previous year.

Indonesia is the only member of the Organization of Petroleum Exporting Countries (OPEC) in the Asia-Pacific region.

Since the opening of the Ecuadorian Embassy in Jakarta two years ago, relations between the two countries and bilateral cooperation in various sectors have gradually grown.

Last year bilateral trade hit a new high of $51.30 million, from $31.86 million in 2005. The balance of trade was heavily in favor of Indonesia, with Indonesian exports reaching $47.85 million in 2006. (Veeramalla Anjaiah)

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