China and Ecuador have joined forces to develop an oil block in Ecuador that contains proven reserves of 120.1 million 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.

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData