Ecuador to freeze assets over Repsol, Perenco debts

Sat Feb 14, 2009 5:05pm GMT
[-] Text [+]

QUITO, Feb 14 (Reuters) - Ecuadorean President Rafael Correa said on Saturday his government will freeze some assets of Spanish oil company Repsol (REP.MC: Quote, Profile, Research) and France's Perenco to seek payment of pending debts.

Correa said Repsol and Perenco owe the country hundreds of millions of dollars over a controversial windfall tax.

"Because they have not paid their taxes, I have ordered coercive measures against Repsol and Perenco," Correa said in his weekly media address. "They are trying to treat us like a colony."

Correa did not specify which assets his government could freeze to demand the tax payments.

Under Ecuadorean law, coercive measures mean the state has the right to temporarily seize assets and freeze bank accounts to force a company to pay pending debts, a senior government official told Reuters.

The official, who asked not to be named, said companies still have to be notified of the decision and will have time to settle their debts before the government takes action.

Repsol and Perenco own oil installations like rigs and shares in a private pipeline as part of their assets.

Local officials from Repsol and Perenco were not immediately available to comment. (Reporting by Alonso Soto; Editing by John O'Callaghan)

 
 

More On These Companies

REP.MC
Last:
Change:
Up/Down:
 
by Name by Symbol