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Ecuador to start oil contract talks in August
30 Jul 2010
Ecuador will begin negotiating with oil majors in August new contracts to favour the state, Non-Renewable Resources Minister Wilson Pastor said on Thursday, setting the clock ticking for firms in the OPEC nation.
If large oil companies do not agree to new terms by Nov. 30 they could have their contracts liquidated under a law enacted this week. Smaller firms will have until year end. 'We will sit down to talk seriously from the second week of August when they have full knowledge of the contract, which we will give them between Monday and Tuesday of next week,' Pastor said.
Companies operating in Ecuador include Spain's Repsol, Brazil's Petrobras and Italy's Eni and the government wants to replace current profit sharing contracts with service contracts that pay a flat fee.
In a joint television interview with his minister, President Rafael Correa said companies that did not reach an agreement with the government will be paid for their oil field investments. In the past he has talked of nationalizing companies who did not strike a deal, but on Thursday the tone was softer.
Source: Newswires
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