Ecuador: $900m in oil-for-loan Pacts

Ecuador expects to receive $900 million in loans agreed to this month with Thailand's PTT International and Oman Trading International, which will be repaid with crude and fuel oil shipments, the government said in a document seen by Reuters on Monday.

 

In the last decade, Ecuador and Venezuela have had access to billions of dollars in loans from Chinese, Thai and Russian institutions with oil shipments as warranty, compromising a large portion of their exports of crude and refined products.

 

The recent agreement signed by Ecuadorian state-run oil company Petroecuador with Thai oil firm PTT International follows a similar pact agreed to by the parties last year, allowing PTT to resell Ecuadorian crude.

 

"Petroecuador will receive initial prepayments of $600 million shortly after signing for crude oil to be delivered to PTT International during the 5-year term of the contract", the government said in an official document.

 

A similar pact with Oman was signed on Dec. 6, the document added.

 

"Petroecuador signed a fuel oil sale and purchase contract with Oman Trading International, pursuant to which Petroecuador will receive an initial prepayment of $300 million shortly after signing for fuel oil to be delivered to OTI during the 30-month term of the contract".

 

Ecuador also agreed to refund to the purchasers any amounts of the prepayments and related surcharges for advance payment which are not otherwise satisfied through the delivery of crude or fuel oil. (Reporting by Marianna Parraga in Houston and Alexandra Valencia in Quito; Editing by Andrew Hay)