Ecuador wants to end oil negotiations in 45 days

QUITO (Reuters) – Ecuadorean President Rafael Correa said he wants oil firms to strike an agreement with the government to overhaul their contracts in 45 days as the state seeks to increase its control over the key sector.

Ecuador started negotiations with five oil firms to switch from contracts that allow companies keep part of the oil they extract to deals in which the state will keep all the crude in exchange for a service fee.


Correa said that if companies are not willing to strike a deal they can either leave the country or continue to pay a windfall tax that the firms said makes their business unviable.

“If they are not happy there is no problem, we don’t want to swindle anybody. How much have they invested? $200 million. Here are your $200 million and have a nice day because (state oil firm) Petroecuador will exploit those fields,” Correa said during his Saturday radio show.

Reuters