Ecuador: State Takeover of Natural Gas Platform, Hydroelectric Plant

Hoy.com.es reports that the Ecuadorian government took control of offshore wells that tap natural gas and a hydroelectric power station in the Pacific Ocean. The U.S. firm Noble Energy owned these operations and had an agreement with Ecuador in which Noble Energy was compensated USD 97 million. The wells and the power plant are to be incorporated in Petroecuador and the Electricity Corporation of Ecuador (Celec), respectively, the public agency Andes reports. The two operations are being carried out in El Oro. The Ecuadorian government had been demanding a renegotiation of Noble Energy’s contract, while the U.S. firm preferred not to renegotiate. This state takeover will save Ecuador about USD 500 million annually according to Francisco Rosero, a Petroecuador official. Read Article