Ecuador is negotiating with PetroChina to receive a US$1 billion advance payment for 96,000 barrels of oil per day over the next two years, Dow Jones reported. The country is also negotiating a US$1 billion credit with a four-year maturity from Beijing, said Diego Borja, Ecuador’s minister of economic policy coordination. Ecuador has asked PetroChina to use the oil for domestic consumption in China and not to resell the oil to Peru or Chile, which already buy large quantities of Ecuadorean oil. However, PetroChina would still be able to resell the oil to California, also a significant Ecuadorean oil consumer. Ecuador is experiencing a cash crunch after buying back 91% of its 2012 and 2030 global bonds for just US$0.35 on the dollar.
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