CNPC Chairman Zhou Jiping called on Ecuadorian Vice President Jorge Glas in Quito, Capital City of the South American country. They had an extensive and in-depth discussion on promoting oil and gas cooperation between the two sides. Later the same day, Mr. Zhou and Ecuadorian Coordinating Minister for Strategic Sectors, Ecuadorian Deputy Secretary-General of Ministry of Finance, President of Petroecuador, and President of the local Amazon Company signed a framework agreement on integrated cooperation in the Pacific Refinery and upstream development.
Under the agreement, CNPC will take a share in the construction of the Pacific Refinery project, and participate in the exploration and development of Ecuador's upstream resources. Further negotiations will be carried out on the basis of the agreement, and the cooperation contract is expected to be signed within the year.
In February 2012, CNPC joined hands with Industrial and Commercial Bank of China (ICBC) to sign a letter of intent for the integrated project with Ecuadorian Ministry of Coordination for Strategic Sectors. A major step forward for the progress of the project, the framework agreement is also a milestone reached by CNPC to play its advantage in integrated upstream-downstream operation and to upscale its oil and gas cooperation in Latin America.
At present, CNPC owns four blocks under its Andes project in Ecuador. Since the takeover in 2006, CNPC has successfully rejuvenated and maintained stable production of the mature fields which have been developed for almost 40 years, resulting in doubled profits.
