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Ecuador Plans Oil Nationalization


In the coming weeks I'll send a bill to Congress authorizing me to nationalize those foreign oil companies that fail to sign the new agreement

April 19, 2010 (Hamsayeh.Net) - Latin America’s fifth-largest oil producer Ecuador warned foreign oil companies currently operating in the country to sign-up to a new proposed deal or face nationalization by Quito.

Ecuador President Rafael Correa said his government is trying to convince foreign oil companies of the benefits of the new proposal in which they would give up profit-sharing deals and agree to the level of profit determined by the government. Foreign oil companies have so far resisted the new proposal arguing that it would slash their profit margin thus making oil operations unprofitable.

 ‘I’ve run out of patience. All of my numerous requests to review terms of oil extraction for foreign businesses were ignored,’ the president said live on national TV. Correa warned that in the coming weeks he plans to send a bill to Congress authorizing him to nationalize those foreign oil companies that fail to sign the new agreement.

 Ecuador produces nearly half million barrels of oil per day and exports over 300,000 barrels of crude to other countries. The country’s oil revenue stood at 6 billion euro in 2008.




Rafael Correa, the President of Ecuador. Latin America's fifth largest oil producer to nationalize the country's oil industry





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