Petroecuador, Pertamina Sign Deal on Ecuador Oil Projects

QUITO Jul 02, 2007 (Dow Jones Newswires)

Ecuador's state-oil firm Petroecuador has signed an agreement with Indonesian state-oil firm Pertamina on several projects to boost oil production in Ecuador.

Petroecuador Executive Director Carlos Pareja and Sukesen Semiarid, Pertamina's vice-president for exploration and production, signed the confidentiality agreement in Miami on Monday, Petroecuador said in a statement.

Petroecuador will pass on information to Pertamina about projects to revive 101 oil wells in the Ecuadorian Amazon that are no longer producing.

Reviving those wells could cost about $500 million, according to government estimates.

Petroecuador also will hand over information about the development of the Oglan project in the province of Orellana, which contains heavy oil of about 11 degrees of API and has estimated reserves of about 35 million barrels.

Ecuador wants to use oil from Oglan for electricity production.

Pertamina will have the right to make an official proposal for the development of the above-named projects, Petroecuador said.

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