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Chinese company signs oil exploration contracts with Ecuador

Xinhua | Updated: 2016-01-27 15:24

QUITO - A Chinese-owned consortium has signed two contracts with the Ecuadorian government to explore two oil blocks in the southern province of Pastaza.

The contracts with Andes Petroleum marked the start of oil exploration in Ecuador's southeastern region and showed foreign investors' trust in the Ecuadorian government, Ecuadoran Minister of Hydrocarbons Carlos Pareja said on Tuesday.

"It sends a message that our country is building up confidence and that companies want to come and invest here despite the low international oil prices," said Pareja.

Andes Petroleum was set up in 2006 with shareholder capital from China National Petroleum Corporation (CNPC) and China Petroleum & Chemical Corporation (SINOPEC).

Zhao Xinjun, president of Andes Petroleum Ecuador, said the consortium has invested around $3.5 billion in the South American country to date, with cutting-edge technologies and full respect for the country's environmental regulations.

With oil as its main export, Ecuador currently produces around 540,000 barrels of oil per day.

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