October 19, 2017 / 5:17 PM / a year ago

Ecuador's Petroamazonas to issue $350 mln bonds to help pay Schlumberger debt

QUITO, Oct 19 (Reuters) - Ecuador’s state oil company Petroamazonas said it will issue some $350 million in bonds to repay part of its debts with oil services company Schlumberger as part of a wider deal that also includes other payment decisions.

Petroamazonas accumulated debt with foreign suppliers as of 2015 in part due to lower oil prices. The company owes Schlumberger some $850 million.

“An agreement with Schlumberger was reached last week for the payment of the total debt ... In November we will issue bonds for $350 million,” Alex Galarraga, Petroamazonas’ boss told reporters during a visit to the country’s oil bloc known as ITT on Wednesday.

“Petroamazonas will issue bonds and several buyers will acquire the paper, and through Citibank the money will be delivered to Schlumberger,” he added.

Schlumberger did not immediately respond to a request for comment.

The agreement also includes payment of $250 million in monthly installments as of next January for two years, at an interest rate of around 4 percent.

The remainder of the debt will be covered in cash and in central bank notes, known by the Spanish acronym TBC.

Ecuador recently negotiated a new fee for service with Schlumberger in an oilfield in the jungle. (Reporting by Alexandra Valencia; Writing by Alexandra Ulmer)

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