State enterprises PETROPERU, of Peru, and Petroamazonas EP, of Ecuador, signed in Quito, Ecuador, a Memorandum of Understanding which implements bilateral agreements on hydrocarbons and enables companies to study the possibility of establishing cooperation mechanisms for the production and transport of oil between the two countries.
In the past 20 years, relations between Peru and Ecuador have been strengthened thanks to the will of both nations interested in working for integration and economic and commercial development of their populations complementarity.
Since 1999, when the Integration Agreement and Mining Energy Complementation between Peru and Ecuador was signed, the two countries have had several conversations to define the feasibility of transporting the South East Ecuadorian crude by pipeline Nor Peruano.
In December 2015 at the IX Binational Cabinet of Ministers Peru - Ecuador the signing of a Memorandum of Understanding between PETROPERU and Petroamazonas established himself as one of the commitments to assess the technical, economic and legal conditions for the exploration, exploitation, transportation, distribution and marketing of hydrocarbons from Block 86 of the Ecuadorian suroriente in the province of Pastaza.
The memorandum signed by the South American state aims to share detailed "for the possible development of the exploration and exploitation of hydrocarbons in Block 86 and its various facilities" information. Block 86 is located in the southeastern Ecuador in the province of Pastaza, Ecuador-Peru border, a new area for Ecuador's oil industry.
The document was signed by the heads of oil companies of both States, German Velasquez Salazar, Chairman of PETROPERU and José Luis Cortazar, General Manager Petroamazonas EP. This initial agreement is the result of dialogues that Peru and Ecuador have maintained for several years to establish a complementary agenda on energy, and is part of the commitments made in the IX Binational Cabinet of Ministers Peru - Ecuador, which took place in December 2015.
For its part, the Chairman of PETROPERU said, "This process will evaluate the technical, legal, environmental and economic conditions for the possible development of a project of oil exploration and exploitation of Block 86".
