QUITO (Ecuador), Oct 6: Ecuador’s government on Friday offered to rework the contracts of foreign oil companies that object to a decree that sharply reduces their share of windfall oil revenues.
President Rafael Correa surprised the companies on Thursday by decreeing that the government will take 99 per cent of the profits gained when oil prices rise above contracted levels. Previously, it had split them 50-50 with the companies.
On Friday, Energy Minister Galo Chiriboga told Teleamazonas television that if companies don’t like the decree “we can negotiate another type of contract.” —AP
