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.

Monday, November 10, 2008

Ecuador Signs Up Petrobras, Dumps Repsol

Quito, Oct 31 (Prensa Latina) Ecuadorian government signed a contract today with Brazilian oil company Petrobras, which offers higher income to the country and ended its links with Spanish company Repsol YPF.

The executive president of state-run Petroecuador, Luis Jaramillo, highlighted the signing of an agreement with Petrobras which paves the way to modify present agreements of participation for others as service supplier.

Jaramillo and general manager of Petrobras in Ecuador, Dirceu Abrahao, signed the agreement establishing an increasing oil income for Ecuador from 67 to 81 pe3rcent for the exploitation of crude in Block 18 and the Agreement of Joint Exploitation in the field Palo Azul.

Petrobras produces about 32 thousand barrels of oil per day in this Andean territory.

The new contract will last one year while another is negotiated to change to the modalito of service suplier, in which the State will own the crude and will only pay for the extraction of fuel.

Ecuadorian Minister of Mines and Oil, Derlis Palacio, welcomed the agreement and pointed that it shows the good will and seriousness of President Rafael Correa´s government to talk with the companies.

Finally, he reiterated the decision of the Executive to change the current accords for others of service supplying and will not tremble to adopt similar measures with other oil companies if talks fail.

Repsol operates on blocks 14 and 16 and in 2007 reported production of 6.6 million barrels.

For now, Ecuador modified its agreements with the companies Andes Petroleum and Petrobras, while finishing by mutual accord the contract with City Oriente and advances in negotiations with other oil companies.

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