Ecuador unveils its oil debt

The uncertainty over the oil presale made during the government of Rafael Correa fades away after the Ministry of Hydrocarbons estimated between 500 million and 600 million barrels the quota the country still has to pay to foreign firms. That is the equivalent of a three-year production.

Ecuador, the smallest member of the Organization of Petroleum Exporting Countries (OPEC), has had to resort to such contracts to get financing. Currently, the country has to deliver crude to the Chinese oil companies PetroChina and Unipec Asia -subsidiaries of Sinopec- and the Thai company Petrotailandia.

“We produce about half of what we promised to pay, that is, around 500 million and 600 million barrels, we have yet to deliver the contracts,” stated Minister of Hydrocarbons Carlos Perez.

President Lenin Moreno, in office since May this year, acknowledged last Friday that the country’s economic situation is “critical” due to the high level of public indebtedness and financing needs. As of May, the country’s historical public debt reached 41.893 billion dollars, according to official data. (I)