VENEZUELA-ECUADOR OIL LOAN UNDER DISCUSSION

  Venezuela has still to work out final
  details of its plan to supply Ecuador with 50,000 barrels per
  day of crude oil to compensate that country for lost exports
  caused by earthquake damage, a senior Petroleos de Venezuela
  (PDVSA) official said.
      "We have yet to finalize details on how the compensation
  will be carried out and how OPEC production quotas will be
  affected," he said during the signing of a joint venture deal
  with Union Pacific Corp today.
      He said an agreement was initialled on a visit last week by
  Ecuador's deputy energy minister Fernando Santos Alvite.
      He pointed out that there are some contractual points to be
  considered. Venezuela, possibly unique among oil exporters,
  requires its clients to sign final destination clauses to
  ensure its oil is not resold on the spot market.
      Ecuador's oil minister Javier Espinosa was quoted today as
  saying Venezuela will export the oil on Ecuador's account and
  remit the revenues to Quito. Ecuador would pay back the oil at
  a rate of 35,000 bpd.
      He said Venezuela's oil would be traded through Ecuadorean
  state oil company Cepe, but the PDVSA official said the company
  never allows third parties to trade its oil.
  

