The people of Ecuador are rising up to refound their country as a pluri-national homeland for all. This inspiring movement, with Ecuador's indigenous peoples at its heart, is part of the revolution spreading across the Americas, laying the groundwork for a new, fairer, world. Ecuador Rising aims to bring news and analysis of events unfolding in Ecuador to english speakers.

Sunday, October 07, 2007

Repsol plays down effect of Ecuador tax changes

By Joe Ortiz

MADRID, Oct 5 (Reuters) - Spanish oil company Repsol YPF on Friday played down the possible effect on its revenue of news that Ecuador will take a larger share of revenues generated by oil companies due to high market prices.

Ecuador said it will take 99 percent instead of 50 percent of "extraordinary revenues" produced by companies above a set, contractual benchmark price.

"The effect on Repsol will be relatively minor," a spokesman said, adding that Repsol's production in Ecuador represents about 1 percent of its total output which was 1.08 million barrels of oil equivalent per day in the first half of 2007.

The government expects to receive around $830 million per year from the hike, which will affect the country's largest investors, Brazil's Petrobras and Repsol, as well as France's Perenco, China's Andes Petroleum and U.S.-owned City Oriente.

On Friday, Eucudorean oil minister Galo Chiriboga said he wants to negotiate with oil companies to ensure they remain in the country under terms favorable to the government.

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