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By Eduardo Garcia
QUITO, July 23 - Ecuador has signed a deal to export crude
oil to China for which the Andean country is going to receive
$1 billion as an advance payment, state-run Petroecuador said
"Petroecuador has signed a supply contract ... with
state-run company Petrochina International Company Ltd, for two
years," Petroecuador said in a statement adding that Ecuador
will receive the $1 billion in the first week of August.
Under the terms of the contract OPEC-member country has
agreed to export nearly 3 million barrels of crude oil a month
to China, the statement said.
Petroecuador said that the $1 billion represents
approximately 28 percent of the total value of the oil that
Ecuador has agreed to export to China.
Ecuador produced over 485,000 barrels of crude oil per day
Ecuador is also negotiating a $1 billion loan with China,
economic policy minister Diego Borja said earlier this week.
The deals could help the Ecuadorean government inject
liquidity into the economy, after export revenues fell sharply
in the first half of the year due to low oil prices.
The country needs alternative financing after defaulting on
some of its sovereign bonds last year, a move that cut the
country off from the international capital markets.
Chile's state-run energy company ENAP said last week that
it had signed a deal by which Petroecuador will supply the
South American country with 10 million barrels of crude oil per
(Reporting by Eduardo Garcia; Editing by Gary Hill)