QUITO, Ecuador- Ecuadorian and Colombian officials signed an agreement last week in Quito that will form a strategic alliance between national oil companies of the two countries.

The agreement forms a joint venture of the two biggest national oil companies of the two countries in order to facilitate a comprehensive partnership in oil E&P, refining, transportation, storage, and sale of oil products.

At the signing ceremony, Ecuadorian Minister of Energy and Mines Ivan Rodriguez called the agreement an indication of his government's determination to promote and accelerate its national oil industry, and to involve itself actively in the international oil market.

Under the agreement, Colombia will provide technological assistance to help Ecuador overcome its difficulties with oil production and services, according to Colombia's Mines and Energy Minister Luis Ernesto Mejia.

Colombia is also reportedly studying the possibility of establishing a bi-national or multi-national oil complex to refine the crude oil produced in Ecuador.

07/26/2006