Attorney General
Confirms Oil Firms'
Violations in Ecuador
Ecuadorean Attorney
General Xavier Garaicoa
confirmed on Wednesday
that the Brazilian oil
company Petrobras
violated two laws, so
its contract will be
terminated.
Garaicoa ratified the
request to the Mining
and Oil Ministry to
rescind the operation
contract in block 18 and
the unified exploitation
agreement in Palo Azul
field, operated by
Petrobras
He pointed out that the
Brazilian company
violated items 11, 12
and 13 of article 74 of
the Hydrocarbons Act.
The firm committed two
violations. The first
consisted of
transferring the rights
or contracts and private
agreements without
authorization from the
Mining and Oil Ministry.
In this case, Petrobras
transferred 40 percent
of its rights and
obligations in block 18
and the Palo Azul field
to the Japanese oil
company Teikoku Oil.
The other violation,
Garaicoa added, is based
on item 12, which
prohibits the
integration of
consortiums and
associations without
authorization from the
Ecuadorean Mining and
Oil Ministry.
The new association was
not registered at the
National Hydrocarbons
Department, said the
attorney general, adding
that "there are enough
legal elements to
rescind the contract."
The attorney general
submitted the request to
Mining and Oil Minister
Galo Chiriboga, who must
keep Petroecuador and
Petrobras informed on
the process and carry
out the investigations. |
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