Ecuador private oil producers to remain despite reform: minister

Ecuador private oil producers to remain despite reform: minister

Quito (Platts)--20Apr2006

Ecuador's private oil producers are not running scared from a reform
passed Wednesday night that will increase the state's take of their earnings,
Energy Minister Ivan Rodriguez told reporters outside a conference Thursday.

"The companies have indicated that they want to continue working here,"
Rodriguez said.

Ecuador's Congress voted Wednesday night to accept President Alfredo
Palacio's partial veto of an administration-sponsored oil law reform passed by
the legislature March 29. The final version reduced the state's take to 50%
from 60% of oil "windfalls," and excluded marginal field contracts from the
reform measure. It will apply to most of the country's 16 production-sharing
contracts held with 12 companies.

The country's private oil producers, with output of about 330,000 b/d,
opposed the reform, but most have agreed to continue talking with the
government.

Rodriguez said he met Thursday with Sinopec and held earlier meetings
with companies including France's Perenco, Chinese consortium Andes Petroleum,
Repsol YPF, Petrobras and Burlington Resources (ConocoPhillips).

The government has offered to renegotiate other terms of the companies'
contracts in the wake of the reform. Rodriguez said he hopes to complete the
renegotiation process in 45 days.

--Carla Bass, newsdesk@platts.com

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