Ecuadorean Congress accepts partial veto of oil income reform

Quito (Platts)--19Apr2006

Ecuador's Congress has approved President Alfredo Palacio's partial veto
of a controversial oil reform bill which will increase the state's take of
private oil income, the congressional press office said late Wednesday.
Legislators agreed with Palacio's changes to Congress' version of the law
passed March 29, reducing the state's take to 50% from 60% of oil windfall and
excluding marginal field contracts from the reform. Of the 79 legislators
present in the 100-member unicameral Congress, 41 voted to accept Palacio's
version, which is closer to the original administration-sponsored proposal.
Congress had until May 7 to decide on the veto. The country's private oil
producers, with an output of about 330,000 b/d, opposed the reform. The change
could bring in more than $500 million extra annually to state coffers if oil
prices remain high, according to government estimates.


 

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