Ecuador revokes Occidental oil contract

QUITO, Ecuador (Reuters) – Ecuador’s Energy Minister said on Monday the government would revoke a contract held by Occidental Petroleum (NYSE:OXY – news) and strip the U.S. company of its assets in South America’s fifth biggest oil producer.

“We accept the demand and petition of Petroecuador (the state oil company) and the country’s attorney general and declare the annulment of the contract,” Minister Ivan Rodriguez told reporters.

The long-running legal dispute with Occidental has sparked repeated protests by indigenous groups and poor Amazon regions demanding the government expel the company and introduce reforms giving the poor more benefits from oil revenues.

Hours before the announcement, Petroecuador turned down an opportunity to negotiate a way out of the dispute with Occidental.

Reuters