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News // Middle East and OPEC

Ecuador to Cut Foreign Cos' Oil Production

31 December 2008 , 08:21Ksenia Kochneva1311
Correa said that the cutback in production ordered for his country by OPEC, will not only involve the state corporation Petroecuador but above all private companies.

Correa said that almost all the contracts for sharing in the production of private companies have been renegotiated, but said that there is an agreement with the Italian company Agip for oilfield services that has meant losses for the nation.

With this strategy "the country will lose little," said Correa, who also used the occasion to defend his decision to bring Ecuador back into OPEC last year, despite criticism from the opposition.

"Entering OPEC was a good decison, a collective decision is always good among small countries, poor countries, above all to defend the price of oil, to have access to technology, to have access to credits," the president said.

Nonetheless, he said that with the collapse of crude prices there had to be a cut in production, "which hits us hard...but that doesn't mean it was a bad decision, it means we had bad luck."

Oil is Ecuador's main export product with an output of some 550,000 bpd of crude, of which some 60 percent comes from Petroecuador and the rest from about a dozen foreign companies that operate in the Andean nation.

Oil revenues in Ecuador finance about 35 percent of government spending.

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