French Government Warns Ecuador Over Perenco Oil Field Takeover

The French government warned Ecuador Monday that its decision to take control of two oil concessions operated by French oil oil company Perenco Group could jeopardize foreign investment in the country.

Perenco suspended oil production in Ecuador last week in a long-running tax dispute that has involved Ecuador seizing 70% of its output since March.
Ecuadoran officials said Saturday that Perenco was abandoning its facilities and that a branch of the state-owned oil company Petroamazonas would take over crude production.

“Quito’s decision is not likely to draw foreign investment to Ecuador, nor to create the business climate suitable for developing economic and trade ties that France hopes for,” said Foreign Ministry spokesman Frederic Desagneaux.

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