Echo Energy, GTLI in Bolivian Energy Tie-up
Latin America-focused Echo Energy and GTL International, a company focusing on energy production and supply in Bolivia, are to pool their efforts in oil, gas and renewable energy business, the former said January 8.
They will promote their business development initiatives in Bolivia together, including assessing new business development opportunities across the full energy spectrum, in relation to which the parties have granted each other a six month period of exclusivity.
"Given the current business environment in Bolivia, the Echo board believes that there is a window of opportunity to pursue business development opportunities across the energy sector, including potentially renewables," it said. It is hoping for "access to advantaged additional origination opportunities and valuable local insight."
GTLI holds the El Palmar operational hydrocarbon contract with the government. It is a subsidiary within a larger investment group known as UruboCorp that includes gold-mining, real estate and energy, and with interests in both the hydrocarbon and renewables sectors.
The period of exclusivity is the only binding term of the agreement, which has an initial term of five years but may be terminated by either party without penalty with six months' notice.
GTLI CEO Luis Carlos Kinn said it saw much opportunity in Bolivia and that Echo's "detailed knowledge, strong relationships and passion for our country" made it a good partner. Echo brings "a reputation for providing innovative commercial solutions and a strong focus on managing costs to projects."