ONGC to set up US$4.5 bln refinery and petrochemicals JV in Ecuador

05-Feb-07

project in joint venture with PetroEcuador and Petroleos de Venezuela. Ecuador looks forward to strengthen trade ties with countries such as India to reduce its dependence on the US, and this seems to be a step in that direction. Currently, Canadian companies account for 69% of the total foreign direct investment in Ecuador and USA makes up for 20%. ONGC Videsh and PetroEcuador signed a memorandum of understanding (MOU) last July that envisaged cooperation between the two companies in developing and promoting petroleum, gas, electricity, petrochemicals, hydrocarbon products and petroleum research. As per the agreement, ONGC Videsh and PetroEcuador would also collaborate in exploration activities and bid for oil and gas blocks in Ecuador and other Latin American countries through joint ventures. Over 59% of Ecuador's total exports currently comprise crude oil and natural gas.