Ecuador takes over oil participation contracts with companies

.N .- The President of Ecuador, Lenin Moreno, issued a decree for the subscription of participation contracts with private oil operators, a modality that had been suspended in 2010

Moreno reformed the regulation for the application of the Hydrocarbons Act, "which gives way to the signing of exploration and exploitation contracts in the oil sector by the modality of participation. "

This standard contract "allows the entrepreneur to take charge of the exploitation, transport and marketing corresponding to their participation."

For Lenin Moreno, this type of contract facilitates shared production, between State and company under contract, and allows to pay the tariff per barrel product.

exafaatario Rafael Correa, in 2010, renegotiated agreements with oil companies operating in the country, with the objective of converting equity contracts Ecuador extracted about 530,000 barrels of crude oil per day, the bulk of which is for export.