Petroamazonas issued bonuses for $ 300 million

Ecuadornews:

The resources will cover the commitments with Schlumberger, reported Álex Galárraga. A new issue of $ 700 million will be ready for next year. The public company Petroamazonas made a new issue of bonuses for $ 300 million in order to obtain resources to continue covering the obligations with Schlumberger.}

The operation was carried out last week in conjunction with the Ministry of Finance and the City Group, as intermediary bank, reported Álex Galárraga, general manager of Petroamazonas. There is great expectation on the part of investors, said Galárraga, since after four hours of appearing in international markets the offers reached over $ 1,100 million. The optimism of the investors motivates the authorities to continue opting for this way and thus reduce the debt of Petroamazonas with its suppliers.

Up to $ 2,000 million amount, up to now, the obligations with the contractors. The state oil company has provisions for three months for $ 900 million. “In short, in the short term, (the debt) would be $ 1,200 million,” the manager said, noting that $ 1,500 million of commitments have been reduced. Of that amount, Petroamazonas, also with the Ministry of Finance, plans to once again take out to the capital market $ 700 million and with that to give stability to the company.

The expert, Henry Llanes, questioned the legality of the transactions and suggested the intervention of the Comptroller General of the State. Although he acknowledged that in the current economic circumstances the issuance of bonds is the only alternative left to Petroamazonas to resolve the situation.

This is demonstrated, noted Llanes, that the State does not have cash resources, the result of poor management of the oil sector during the previous government. “The little income that is received from oil exploitation, the State destines them to pay obligations,” said Llanes.

Investors

The papers are attractive At the discretion of Henry Llanes, the investors’ interest in Petroamazonas papers is that, being an oil company if the State does not pay, the creditors could even mortgage the crude oil shipments.

7 minor fields last week negotiated Petroamazonas with tariffs between $ 10.21 and $ 17. Costs have been reduced So far this year the production of crude oil barrels has cost $ 16.83. In 2016 it was $ 19.87. (I)

Source: http://www.eltelegrafo.com.ec/noticias/economia/1/petroamazonas-emitio-bonos-por-usd-300-millones