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Ecuador oil law could cut investment: Petroecuador board member
By Carla Bass
Platts
QUITO
Petroleumworld.com 04 03 06
Ecuadorean legislation to increase the state's share of windfall private
oil company arnings to 60% could scare away new investment, a board member of
state Petroecuador said Friday."This could affect the environment for new investment, although each
company has to make its own calculations about whether or not it is profitable
to stay in Ecuador or not," Francisco Rendon Rendon said at a finacial
seminar. "But there is definite concern among the companies about this."Plans to renegotiate the private oil production contracts with
Petroecuador, which was supported by the country's private producers, would
not be able to continue at this point, Rendon said.Legislators in Ecuador's 100-member unicameral Congress Wednesday
approved reforming to the country's Law of Hydrocarbons to set the state's cut
of extraordinary oil income at 60% night. This was up from 50% in the original
administration-sponsored proposal. Other changes included applying the
reform to marginal-field contracts as well as production-sharing contracts.The measure now goes to President Alfredo Palacio, who has 10 days to
approve or completely or partially veto the bill as soon as it officially
arrives at his offices.Private oil companies operating in Ecuador produce about 330,000 b/d of
the country's total output of 531,000 b/d.--Carla Bass, newsdesk@platts.com
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Platts 03 31 06
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