China and Ecuador have joined forces to develop an oil block in Ecuador that contains proven reserves of 120.1m barrels of heavy crude.
China’s Sinopec International Petroleum and Ecuador’s state-owned Petroecuador will create a 40:60 joint venture company that will explore and exploit Bloc 42 in Ecuador’s eastern Pastaza province.
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The new joint venture company will seek a $1bn investment to develop the Bloc 42 area, which has two oil fields, Ecuador’s minister of non-renewable natural resources Germanico Pinto said.
Energy hungry China believes Ecuador is a potential investment target with companies such as Petrochina signing a two-year crude oil contract that ensures Ecuador the sale of its oil.
Ecuador has become one of the biggest targets of Chinese investment in Latin America with direct investment touching $2.2bn.
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By GlobalData
