Official: Govt Asks IDB to Approve Petroecuador Loan This Year

Ecuador's government has asked IDB to approve this year a US$285mn performance-driven loan to support state oil company Petroecuador's US$913mn multi-year investment program, a bank official told BNamericas.

Bank officials earlier this month visited Ecuador as part of IDB's preparation work for the possible financing, the official said. Additional details on the loan's timing were not available.

In general terms, the loan would help Petroecuador increase output, which currently stands at a little over 170,000b/d compared to 220,000b/d in January 2003. The goal is to up production to 180,000b/d by year-end.

IDB funds would complement Petroecuador's own resources and those from the country's energy and hydrocarbons investment fund FEISEH, along with funds from JVs and block 15, according to bank information.

The program also aims to strengthen the state company's purchasing system and implement a modern cost-accounting system to help the finance ministry and Petroecuador draft long-term public policy decisions.

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