UPDATE 2-Ecuador 'flexible' in oil talks, firms no show

Mon Oct 8, 2007 8:08pm BST
 
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(Adds details on companies missing the talks)

QUITO, Oct 8 (Reuters) - Ecuador will be flexible in talks with foreign oil companies to rework contracts, but a surprise increase in oil revenues taken by the state is not open for negotiation, Oil Minister Galo Chiriboga said on Monday.

But foreign firms, including Spain's Repsol (REP.MC), Brazil's Petrobras (PETR4.SA) and French firm Perenco failed to show up for an early Monday meeting with the government to start talks on shifting to a new form of contract.

Leftist President Rafael Correa, with a strong mandate in a recent assembly vote, surprised oil operators on Thursday by hiking the state's share in revenues and the contract talks are part of his drive for more state intervention in the economy.

Chiriboga said he wanted the companies to switch from contracts allowing them access to part of the crude they extract to new deals giving the state all of the oil and the companies a service fee payment instead.

Still he did not rule out creating new types of contracts in the renegotiation talks.

"If the law allows us to have a new type of contract, or a hybrid, we could sit down and negotiate ... we could explore it," Chiriboga told Reuters. "We are always going to be flexible in the renegotiation talks."

Repsol, Petrobras, Perenco, China's Andes Petroleum (0857.HK) and private, U.S.-owned operator City Oriente have agreed to start talks with the government.

But representatives of the companies missed the initial meeting.  Continued...

 

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