Ecuador's new oil law to
increase revenues from private-sector
Petroleumworld
CARACAS
Petroleumworld.com 02 09 06
Ecuador's Economy Ministry is designing a new
hydrocarbons law to increase the government's revenues from private-sector
oil contracts by an extra $600 million this year, the deputy economy
minister, Fabian Carrillo, told Dow Jones Newswires in an interview.
Among others things, the new law will provide
an "incentive" for oil companies to renegotiate their
oil contracts as part of the government's longer-term strategy
of increasing revenues from oil production, he said, according
to Dow Jones.
Economy Minister Diego Borja, Tuesday, told reporters
that one of the key points of the new law would be to split equally
between oil companies and the government the extra revenues when
oil prices rise above those set in operating contracts.
At present, some operating contracts are based
on low international crude oil prices, with all revenues above
that oil price going directly to the oil companies.
According to the government Petroecuador in 2004,
Ecuadorian crude prices in some contracts is less than $20, while
averaged 2004 market prices are $42.84 per barrel, Dow Jones reported.
The new law would be retroactive to 2000, Borja
told reporters.
Alos the new law, all taxes and royalties will
be unified and very clear and made more transparent.
The new law should be delivered to to Congress
for approval by President Alfredo Palacio in the next few days,
cariilo said.
Ecuador has oil contracts with at least 10 international
oil companies, Occidental Petroleum , Encana , Petrobras and Repsol-YPF,
among others.
Petroleumworld
02/08/06
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