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.

Friday, February 15, 2008

Ecuador Tough on Foreign Oil Firms

Quito, Feb 8 (Prensa Latina) Ecuadorian president, Rafael Correa, threatened suspension of contracts with foreign oil companies if they refuse to invest in crude oil fields in the territory.

Companies from Brazil, China, Spain, France and the United States must reactivate their investments by the end of February or the wells will be transferred to other companies, Correa stressed.

He pointed out the need of these countries to abide by the new rules imposed by the national government in 45 days in a situation that has been going on since January and concludes by the end of this month.

"If we have reached no conclusion and they continue refusing to invest I will take other measures," warned the Head of State in declarations to a local radio station.

Correa mentioned the United States City Oriente, France's Perezco, Petrobras from Brazil, Repsol-YPF from Spain and Chinaós Andes Petroleum as refusing to invest, due to the renegotiation of their contracts.

The government aims to change the agreements of participation signed previously that leave the State only 18% of the volume drilled.

In recent declarations the president explained that the companies have three options: continue with the transference to the State of 99 percent of its extra profits obtained by the hike in oil prices, change their contracts or abandon Ecuador.

At present the companies are renegotiating their agreements and the implementation of a period of transition is foreseen for a change of contracts.

Ecuador is the fifth oil producer in South America with an extraction of about 500 thousand barrels a day.

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