Ecuador Confirmed Revision of Contracts with Oil Corporations
Wednesday, September 14, 2005 /

Contracts of oil companies to be reviewed

Ecuadorian State Oil Company Petroecuador decided to start reviewing all the contracts with foreign oil corporations, fulfilling one of the most important claims of the general strike carried out last month in northern Orellana and Sucumbios provinces, in defense of the Ecuadorian oil business.

Ecuadorian President Alfredo Palacio announced the decision, a week ago.

According to Ecuadorian newspaper El Universo, the Minister of Energy Iván RodrÃguez said the review of the contracts would be carried out equally and would respect the legislation in operation. This review will take approximately three months.

El Universo also reported that Canadian oil corporation Encana agreed with Chinese consortium Andes petroleum on the sale of all its shares and oil operations in Ecuador, for almost $1.5 million dollars, on Tuesday. The Ecuadorian government must authorize the sale beforehand.

It is expected that the sale will take place before the end of the year, although the scheduled deadline is July 1st, 2006.

This way, the people from Orellana and SucumbÃos will reach Encana's withdrawal from the country, another fundamental reclaim of last August's strike.

The legal Vice-President of the US oil corporation Occidental Petroleum, Daniel Almaguer, said the company is willing to renegotiate its contracts with the Ecuadorian state.

However, El Universo reported that Almaguer conditioned the renegotiation. The businessman wants the State to keep the contract that allows the company also known as Oxy to exploit the Block 15, in the Ecuadorian Amazon.