Ecuador threatens oil companies with eviction [View All]

QUITO (MarketWatch) -- President Rafael Correa said on Saturday that oil private companies that don't sign new services-based contracts must leave the Andean country.

"I'm not playing," Correa said during his weekly media address. "The rules are proposed. Take it or leave it. If they don't like it, farewell and we will pay for their investments."

The Correa statement came just 10 days before the deadline he gave for the five biggest private producers to sign new contracts.

Ecuador wants to switch all current production-sharing deals with private companies to service contracts, in order to tighten its control over its natural resources.

Under service contracts, private oil companies will be paid a production fee while the government would own 100% of the oil and gas produced. ............(more)

The complete piece is at: http://www.marketwatch.com/story/ecuador-threatens-oil-companies-with-eviction-2010-11-14