Low chances for Petroecuador to ink imports deal under financing -traders
By Marianna Parraga
HOUSTON Oct 16 (Reuters) - State-run oil company Petroecuador has had difficulty striking financial terms for a deal to import about 30 million barrels of medium crude, traders involved in the discussions told Reuters.
Ecuador arranged meetings this week in Houston with more than 20 oil suppliers interested in selling crude to the company. The firm is expecting to start paying for the oil 12 to 18 months after delivery of the first cargo.
"There is no guarantee. This would be similar than selling under open credit, but receiving the money a year or more after first delivery. It implies a high risk," one of the sources said.
Petroecuador was not immediately available for comment on the discussions.
More than 70 percent of Ecuador's oil exports are sold to Chinese and Thai firms under loan-for-oil agreements, so the credits delivered to the state-run company are secured with barrels that can be easily resold on the open market to monetize the pending debt.
The new proposal by Petroecuador is to import up to 110,000 barrels per day (bpd) of a medium sweet crude to be processed at Ecuador's Esmeraldas refinery under a financial agreement, while freeing the same volume of domestic crude for spot sales.
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