Ecuadorean President Guillermo Lasso participates in an interview at Carondelet Palace, in Quito, Ecuador April 26, 2022. REUTERS/Santiago Arcos/File Photowill be void once contracts for the operation of two oil production blocks expire on Dec. 31, the government and subsidiary said on Thursday.
New Stratus has said it will resort to international arbitration, arguing Ecuador has breached contractual clauses by not accepting direct negotiation. Service provision contracts, such as the one that has applied to Petrolia's blocks, oblige the government to pay the operating companies a certain fee per barrel produced, though the state can accumulate debt to them if oil prices are below a certain amount.
The company has not yet presented its arbitration case because it must complete a mediation process first, he added.
Anyone know if the Savadra’s are ok?