Ecuador's $290 mln Petrolia debt void on handover - gov't, company

  • 📰 Reuters
  • ⏱ Reading Time:
  • 28 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 97%

United States News News

United States United States Latest News,United States United States Headlines

Ecuador's $290 million debt to a subsidiary of Canada's New Stratus Energy will be void once contracts for the operation of two oil production blocks expire on Dec. 31, the government and subsidiary said on Thursday.

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.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Anyone know if the Savadra’s are ok?

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in US

United States United States Latest News, United States United States Headlines