Repsol signs new oil contract with Ecuador

The Ecuadorean government and Spanish oil company Repsol YPF have signed a one-year transitional deal giving the South American nation a greater share of oil profits, ending months of dispute.

Energy Minister Derlis Palacios says the agreement gives Ecuador 28 to 46 percent of profits, depending on prices. Previously it received 17 percent.

When the deal expires, the two sides will ink a new deal that changes from payment in a per-barrel percentage to payment for service.

Repsol recently agreed to pay $447 million in disputed taxes and interest by 2014 to extend its contract by six years to 2018.

Ecuador is renegotiating oil contracts as plummeting prices have slashed revenues.

The agreement was reached Thursday.

[Source: AP in Forbes, NY, 12Mar09]

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