The Minister of Energy and Non-Renewable Natural Resources, Juan Carlos Bermeo, reported that at the moment there are 23 oil companies that have requested their free and voluntary migration of the current contracts to the participation modality.
This migration was a proposal embodied in the hydrocarbon policy of the government of Guillermo Lasso in July 2021, in decree 95.
Minister Bermeo indicated that of the 23 companies, 8 are companies that had exploration and exploitation contracts signed with the Ministry of Energy. The The remaining 15 provide specific services to Petroecuador and their contracts have been entered into with that public company.
The minister recalled that in accordance with the Hydrocarbons Law, companies that have contracts with the Ministry can request contract migration at any time, while those with Petroecuador have until April 11, 2022 to submit their request.
The participation contract, as indicated in the hydrocarbon policy, promotes the possibility of sharing both investments and risks and also profits with private companies.
East contract, which basically consists of a private company operating a field and dividing the production at the wellhead between the company and the State, would have several conditions. Between them: competitive international standardsminimum investment commitments, fair and balanced production participation scale, economic stability clause against exogenous factors (price rises and falls), environmental Protection and development of surrounding communities. It will also have clear and clear grounds for termination of the contract. international arbitrations, in accordance with the Constitution. (I)
Source: Eluniverso
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