Ecuador sees lower state oil investment in 2009

QUITO, Jan 8 (Reuters) - Ecuador's Oil Minister Derlis Palacios said state oil company, Petroecuador, could invest around $1.2 billion in 2009, less than the initial investment budget for 2008 as falling oil prices start to pinch.

For 2008, Petroecuador's board approved investment for around $1.7 billion to boost dwindling production.

Palacios, who is part of the board, told Reuters the fall in world oil prices have prompted the government to tame early investment in the key sector that is one of the OPEC nation's main sources of revenue. (Reporting by Alonso Soto; editing by Marguerita Choy)