Energy ministers from Ecuador and Venezuela Monday signed a statement of intent to begin gas exploration in the Gulf of Guayaquil.
Ecuadoran Energy Minister Galo Chiriboga said that state company Petroleos de Venezuela would assume exploration costs of 150 million U.S. dollars.
If exploration finds nothing, "there is no risk for Ecuador, but if the exploration comes up positive, the exploitation process will be negotiated," he said.
The Navy Oceanography Institute will probably do the seismic studies, he added.
The document suggested that Venezuela and Ecuador will form a joint venture company.
"The signing of this document responds to an initiative by the governments of Ecuador and Venezuela to economically integrate the region by establishing energy alliances," Chiriboga added.
He also said that it helps Ecuador to boost hydrocarbon supply security in the medium and long term by diversifying sources.
Venezuelan Energy Minister Rafael Ramirez signed on behalf of his nation.
Source: Xinhua
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