Correa seeks favourable terms for contracts

[Judi Lynn]

Correa seeks favourable terms for contracts

Ecuador's President Rafael Correa said he hopes by the end of the year to renegotiate unfavourable oil contracts that have allowed some foreign companies to keep as much as 80% of the crude they have extracted from his country.

News wires 07 July 2010 16:03 GMT

Correa told AFP in an interview that he is seeking more favourable terms from companies drilling for oil in his country.

"All the companies say that's fine, but they've made us lose time and our patience is running out," said the leftist president during a visit to Venezuela, urging a conclusion of all deals by December.

Ecuador is offering deals under which Quito will pay operating expenses and set the profits foreign companies receive. The companies will also be required to invest in exploration.

"If they don't respect the conditions, we'll pay off their investments and they can go and do deals in other countries," said Correa, who first took power in January 2007 and whose government has threatened to expropriate companies that fail to reach a deal.

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