The PetroAndina energy integration initiative was agreed at the XVI Andean Presidential Council, held in Lima, Peru, on July 18, 2005, as a common platform or “strategic alliance” of the oil and energy state-owned entities of Bolivia, Colombia, Ecuador, Peru and Venezuela, “to promote electricity and gas interconnection, mutual supply of energy resources, and joint investment in energy projects.”
At the summit, the Presidents of Bolivia, Colombia, Ecuador, Peru and Venezuela signed the document “Presidential Act of Lima. Democracy, Development and Social Cohesion,” which allowed the representatives of the member States of the Andean Community to take note of the proposal submitted by the Bolivarian Republic of Venezuela for the creation of PetroAndina. The heads of state and government at the summit also considered the convenience of setting up an Andean energy agenda, within the context of the South American integration, which takes into account the different binational agreements already in force as well as the huge energy potential represented by the oil, coal and gas deposits and by the water, air, solar and other energy sources existing in our countries, always bearing in mind their vital significance for modern development, particularly for the Andean and South American integration processes.
Member States also reiterated their interest in strengthening regional integration through the promotion of energy interconnection projects in South America, taking into account the existing agreements and trade schemes.
The first beneficiary of the new Andean cooperation initiative is Ecuador, net oil exporting country, former OPEC member, and gasoline importer, which is currently negotiating the possibility of refining in Venezuela part of its crude, with a view to save part of the US$1.0 billion that this country pays every year for imported fuels.