Sunday, December 5

Petroecuador modifies terms for oil tenders

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QUITO — Ecuador’s state oil company Petroecuador said on Saturday it has modified some bidding terms for its international tenders, in a bid to increase participation.

The changes will make rules about payments and bank guarantees more flexible for pre-approved companies interested in bidding, the company said in a statement.

Upfront payments can now serve as an alternative to letters guaranteeing credit during tenders, requiring the client to deposit the export value ahead of time.

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“This flexibility comes because of difficulties accessing letters of credit from some international entities, because of restrictions on the commercialization of crude extracted from the Ecuadorean Amazon,” the company said.

Petroecuador also increased the number of international banks which can provide guarantees to 750 from 386.

Some 60 businesses, among them refineries, are part of Petroecuador’s list of providers.

Ecuador restarted spot sales on the international market in 2017 in an effort to increase its oil income, which is key to the stability of its dollarized economy.

Between 2017 and 2020, the country earned $2.2 billion from spot sales, according to Petroecuador figures.

Ecuador also sells crude via long term contracts to companies in Asia. (Reporting by Alexandra Valencia; Writing by Julia Symmes Cobb; Editing by Andrea Ricci)