Ecuador offers to buy out oil companies

Date : 05/17/2008 @ 7:49PM
Source : TFN
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Ecuador offers to buy out oil companies

        QUITO, Ecuador (AP) - President Rafael Correa says Ecuador wants to buy out
private oil companies unwilling to negotiate new deals with his government.
    Correa has asked companies now suing over an October decree that slashed
their share of windfall oil profits to 1 percent to drop their lawsuits.
    Ecuador on Friday offered to boost those companies' share of soaring
windfall profits to 30 percent. If companies aren't happy with that offer,
Correa says his government will buy their assets at "a fair price."
    France's Perenco Gabon SA, U.S.-based Murphy Oil Corporation and
ConocoPhillips-subsidiary Burlington Resources are among those to file claims
against Ecuador.
    Windfall profits are unexpected earnings on oil sold for more than the price
fixed in a company's contract.
    
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