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| Caribbean-Latin America |
| No plans to nationalise oil: Eucador |
| 2006-05-16 |
| ECUADOR today ruled out nationalising the state's energy sector, as industry officials accompanied by police held talks in the offices of Occidental Petroleum after the government moved to seize control of the US firm assets. Petroecuador president Fernando Gonzalez told reporters the government has no plans to nationalise its energy sector such as Bolivia did earlier this month in a move that follows attempts by Venezuela's President Hugo Chavez to tighten state control over his own oil sector. Ecuador, South America's fifth largest oil producer, yesterday terminated its contract with US-based Occidental over accusations that the company illegally transferred part of an oil block without government authorisation. Petroecuador officials, including Mr Gonzalez, are holding talks with Occidental's officials at the company headquarters in Quito to draft a plan for the take over of its operations. Occidental is the country's largest investor and extracts 100,000 barrel of oil per day. Energy Minister Ivan Rodriguez said Ecuador is studying the possibility of a joint venture with other Latin American state oil companies to operate Occidental's oil fields. "There is a possibility and we are analysing a joint venture with a state oil company," Mr Rodriguez told a local television station. He said some of the possible candidates include Brazil's Petrobras, Chile's Enap, Mexico's Pemex and Venezuela's state oil company PDVSA. The dispute centreed on accusations that Occidental transferred 40 per cent of Amazon Block 15 to Canadian oil company EnCana without government authorisation in 2000. Ecuador's move also comes amid growing nationalist sentiment in Latin America for more control over energy and mining resources in a move to direct more revenues toward helping its indigenous poor. |
| Posted by:tipper |
| #1 In other words, anybody but America can operate the oil fields. Fuck em. |
| Posted by: Ebbavising Anganter2423 2006-05-16 16:06 |