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Ecuadorean threat to oil giants | Ecuadorean threat to oil giants |
(about 8 hours later) | |
The Ecuadorean government has threatened to take over foreign oil concessions if the companies resist growing state control of the industry. | |
President Rafael Correa said every day millions of dollars were going to oil companies that should go to the state. | President Rafael Correa said every day millions of dollars were going to oil companies that should go to the state. |
The government has been pressing the companies to give up concessions that give them a share of oil field profits and accept service contracts instead. | The government has been pressing the companies to give up concessions that give them a share of oil field profits and accept service contracts instead. |
Oil firms operating in Ecuador come from Spain, Brazil, China and Italy. | Oil firms operating in Ecuador come from Spain, Brazil, China and Italy. |
'Serious action' | 'Serious action' |
President Correa said during a televised address on Saturday: "Every day that passes there are millions of dollars going to these companies that should be going to the Ecuadorean state. | President Correa said during a televised address on Saturday: "Every day that passes there are millions of dollars going to these companies that should be going to the Ecuadorean state. |
"I'm out of patience. We are sending a bill to Congress that would allow for the expropriation of oil fields should the companies not want to sign the new contracts. | "I'm out of patience. We are sending a bill to Congress that would allow for the expropriation of oil fields should the companies not want to sign the new contracts. |
"The oil companies are playing with us. In the coming weeks there are going to be very considerable actions. I have no regard for these companies, which have abused our country." | "The oil companies are playing with us. In the coming weeks there are going to be very considerable actions. I have no regard for these companies, which have abused our country." |
Foreign oil companies operating in Ecuador currently include Chinese-owned Andes Petroleum, Brazil's oil giant Petrobras and Repsol-YPF, dominated by Spanish and Argentine capital. | Foreign oil companies operating in Ecuador currently include Chinese-owned Andes Petroleum, Brazil's oil giant Petrobras and Repsol-YPF, dominated by Spanish and Argentine capital. |
In 2008, Mr Correa defaulted on $3.2bn (£2bn) of foreign debt he described as "illegitimate", calling the international lenders "monsters". | In 2008, Mr Correa defaulted on $3.2bn (£2bn) of foreign debt he described as "illegitimate", calling the international lenders "monsters". |
Ecuador is Latin America's fifth-biggest oil producer but World Bank estimates show that some 56% of the country's 13.4 million people live in poverty. | Ecuador is Latin America's fifth-biggest oil producer but World Bank estimates show that some 56% of the country's 13.4 million people live in poverty. |
That figure rises to more than 80% for indigenous Ecuadoreans, who are mainly small farmers in mountainous highlands. | That figure rises to more than 80% for indigenous Ecuadoreans, who are mainly small farmers in mountainous highlands. |
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