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, December 23, 2007

Ecuador Starts Oil Co. Negotiations Ecuador Starts Oil Co. Negotiations

Quito, Dec 11 (Prensa Latina) The Ecuadorian government starts Tuesday the renegotiation of contracts with five foreign oil companies that have investments in that Andean territory.

Talks will begin with China's Andes Petroleum, the US City Oriente, France's Perezco, Spain's Repsol, and Brazil's Petrobras, whose representatives accepted to negotiate with the State.

The executive proposes to change contracts of participation for provision of services, and the process will be in charge of five multidisciplinary teams that simultaneously negotiate with foreign entities.

Oil and Mining Minister Galo Chiriboga highlighted that this renegotiation, halted since 2003, is one of the aims of the country's President Rafael Correa, interested in increasing the State's presence and profits in the hydrocarbon sector.

These talks take place after the chief of State decreed oil companies must hand over 99 percent of extra incomes obtained from the high price of crude oil in the international market.

Chiriboga stated that the country seeks to negotiate and not confiscate, and also rejected to analyze the bylaw that establishes 99 percent of extra profits to the State.

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