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Tuesday, January 29, 2008

Ecuador Prioritizes Mining, Oil

Quito, Jan 28 (Prensa Latina) Changes in the oil and mining sectors are the Ecuadorian government's top priorities on Monday, aimed at increasing income and guaranteeing that those resources are State-run.

President Rafael Correa has given a 45-day term for the conclusion of renegotiations of contracts with foreign oil companies with investments in the country.

Over the weekend, Correa deplored plundering in the sector in which previous social-Christian governments changed the modalities of agreements to the detriment of the Ecuadorian people.

The president offered three choices to the entities: sign agreements for the provision of services, keep delivering 99 percent of surplus income resulting from the costly commercialization of oil, or end their operations.

Referring to the last choice, he pointed out the State promises to return investment funds, and Petroecuador state oil company will assume exploitation of those fields.

1 comment:

  1. Well, if you are paid for your investment costs plus keep a percentage of the industry, I don't see where this should be an issue for the companies.

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