Posted on 05/15/2006 6:53:14 PM PDT by HAL9000
Excerpt -
QUITO, Ecuador (Reuters) - Ecuador's Energy Minister said on Monday the government would revoke a contract held by Occidental Petroleum and strip the U.S. company of its assets in South America's fifth biggest oil producer."We accept the demand and petition of Petroecuador (the state oil company) and the country's attorney general and declare the annulment of the contract," Minister Ivan Rodriguez told reporters.
The long-running legal row with Occidental has sparked repeated protests by indigenous groups and poor Amazon regions demanding the government expel the company and introduce reforms giving the poor more benefits from oil revenues.
Hours before the announcement Petroecuador turned down an opportunity to negotiate a way out of the dispute with Occidental. An Occidental spokesman was not immediately available for comment.
"The announcement (of annulment) implies the immediate return to the state of the contracted areas and handover of all its equipment and machinery," Rodriguez said.
~ snip ~
(Excerpt) Read more at news.yahoo.com ...
Probably Chavez forced their hand, like in Bolivia
Does this mean that Algore lost a bunch of money? Or did he sell beforehand?
Press Release Source: Occidental Petroleum Corp
Ecuador's Energy Minister Terminates Occidental's Block 15 Contract
Monday May 15, 9:34 pm ET
LOS ANGELES, May 15, 2006 (PRIMEZONE) -- Ecuador's Minister of Energy formally declared that Occidental's (NYSE:OXY - News) contract for the operation of Block 15 had been terminated and the Government of Ecuador has the right under Ecuadorian law to seize the assets immediately. Despite the actions taken by the Government of Ecuador, Occidental remains committed to an amicable settlement of this dispute. Occidental's Block 15 operations represent approximately 7 percent of Occidental's first quarter worldwide production, 3 percent of its pro-forma proved consolidated reserves including the Vintage acquisition, and 2 percent of its total property plant and equipment, net of accumulated depreciation, depletion and amortization, at March 31, 2006.
Occidental is currently reviewing the contents of a 33-page document which it received from the Government of Ecuador. Occidental maintains that it has complied fully with all material obligations under its contract with the Government of Ecuador and is evaluating its legal options to defend its interests.
WHat of Ecuador's can we seize?
Steal their roll of toilet paper and even Chavez might keep his distance.
and we hear all about al bore's Occidental ties now from the MSM , wont' we. (Oh no, I forgot, the pubbies are the "oil" men)
didn't gore sell our strategic oil reserves to occidental?
Still a leftover from Lucio Garcia's administration, likely. They impeached him for trying to be Chavez, but there are likely still remnants around.
Anyhow, Ecuador is still more pro-U.S.A. than most of South America.
Don't take this for too much of a big deal, yet. Ecuador is booming with American businesses these days. Guayaquil just build a whole new downtown complete with IMAX theatre and everything.
It's a far cry from Hugo Chavez's Venezuela.
LOL! So much for "contracts".
What a freekin' backwater it is down there.
Never could understand how he got away with it - or all the other crimes - oh yeah "No controlling legal authority"
Petroecuador is corrupt and unable to manage its own properties at a profit. Without foreign investment in their oilfields, their production will only go down.
Its a shame. You only have to wonder how much misery they will inflict upon themselves before they get it right.
The tribes are managed by NGOs who advise them on oil policy, that oil policy being "no". The NGOs, I sincerely believe, are funded by OPEC.
This is much the same dynamic you saw unfold in Bolivia. Chavists are at work in Ecuador and have been for some time among the military; Chavez is already responsible for one coup there.
When oil goes back to 50 and all those bribes Chavez has been throwning around dries up, these countries are going to end up with nothing.
Good. They obviously need a lesson in communism vs capitalism.
Ecuador's Energy Minister forces out of power those who have legal economic control , yet we see no protests around the world saying that this regime is steeling oil, no mass marches lobbing the United nations to get involved, there are no flag burnings, and there are no bans on Ecuador political cartoons and satire...maybe this is a good thing as a sign the protesters have just run out of steam?
How about Ecuador?
Occidental was owned by Armand Hammer, who was the Soviet's best friend. I figure his heirs are probably as far to the left as he was, so I can't get excited.
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