President Lenin Moreno ordered this Wednesday, April 24, 2019 to begin the process of merging the oil companies Petroamazonas and Petroecuador. The deadline to comply with this process will be until December 31, 2020.
Executive Decree 723, which makes this decision viable, establishes that to comply with the unification of these signatures, the Temporary Fusion Unit will be created. This will be incorporated into Petroamazonas.
This unit will be in charge of managing this process and its financing will be made with the contribution of both oil companies. The Ministry of Energy and Non-Renewable Natural Resources will also participate in this process.
This state portfolio will lead the merger of both firms and will be responsible for sending to the Presidency of the Republic the pertinent technical reports related to the unification of Petroamazonas and Petroecuador, including those that are prepared by the Temporary Fusion Unit.
The initiative to have only one state oil company is part of the business improvement plan presented by the Government in April 2018. Initially, this process was expected to take more than 24 months.
This measure will make it possible to unify, in a single state firm, the activities related to the exploration, exploitation, production, transportation, refining and commercialization of crude oil and its derivatives. As of December 2018, prior to the request to reduce the payroll made by the Government to public companies, Petroecuador and Petroamazonas had 11,731 employees, in total. (I)