Windfall oil rule 'excessive': Ecuador president
Ecuadorean President Rafael Correa says a 2007 decree asking oil companies for 99 percent of their windfall profits is ``excessive.''
By Agencies |
QUITO: Ecuadorean President Rafael Correa says a 2007 decree asking oil companies for 99 percent of their windfall profits is ``excessive.''
Correa said Saturday on his radio show that he issued the decree to make up for years when companies kept all profits, but now Ecuador is willing to reduce its share to 70 percent.
Windfall oil profits result when oil is sold at prices higher than those fixed in companies' contracts.
Ecuador is currently renegotiating drilling and exploration deals.
Brazilian state oil company Petrobras and the Chinese-owned Andes Petroleum have already agreed to change their contracts. Ecuador will pay the companies to extract oil, rather than give them a portion of the crude they pump.
Correa said Saturday on his radio show that he issued the decree to make up for years when companies kept all profits, but now Ecuador is willing to reduce its share to 70 percent.
Windfall oil profits result when oil is sold at prices higher than those fixed in companies' contracts.
Ecuador is currently renegotiating drilling and exploration deals.
Brazilian state oil company Petrobras and the Chinese-owned Andes Petroleum have already agreed to change their contracts. Ecuador will pay the companies to extract oil, rather than give them a portion of the crude they pump.
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