Monday, June 28, 2010
Ecuador would get oil revenue under proposed law
* Bill calls for 25 pct of oil revenue to go to the state
* Measure marked must be acted on within 30 days
QUITO June 27 (Reuters) - Ecuador wants 25 percent of gross income from the country's key oil sector to go to the state, according to a law proposed by the government aimed at increasing revenue from natural resources.
The bill, sent to Congress late on Friday, is marked urgent, meaning it must be acted on by the legislature within a month or it automatically becomes law.
The smallest member of OPEC, Ecuador has been trying to renegotiate contracts with private oil companies for two years in a bid to boost state control over the oil sector.
"The state will reserve 25 percent of gross income," the text of the measure says.
Companies that do not sign contracts governed by the new law will be paid for the investments they have made in the country and their operations will be taken over, President Rafael Correa has warned.
Spain's Repsol (REP.MC: Quote), Brazil's Petrobras (PETR4.SA: Quote) (PBR.N: Quote), Chinese consortium Andes Petroleum and Italy's Eni (ENI.MI: Quote) are among the biggest oil investors in the Andean country.
Ecuador, which holds the rotating presidency of OPEC this year, produces 470,000 barrels of oil per day, 44 percent of which is pumped by private companies. (Reporting by Santiago Silva; Editing by Cynthia Osterman)