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Monday, March 1, 2021

Ecuadorean Government Rejects Repsol Assets Sale to Canadian Company

The Ecuadorean government will reject the planned sale of Spanish oil juggernaut Repsol’s assets in Ecuador to Calgary-based News Stratus Energy, following months of disagreements with the administration of President Lenin Moreno.

The Ecuadorean government will reject the planned sale of Spanish oil juggernaut Repsol’s assets in Ecuador to Calgary-based News Stratus Energy, following months of disagreements with the administration of President Lenin Moreno.

During a Thursday night interview on Radio Libertad, Ecuadorean energy minister Rene Ortiz said that New Stratus Energy didn’t meet technical and financial requirements. “Technically this company does not demonstrate that it has similar or better operations than Repsol. Financial capacity is needed, which it does not have” Ortiz said during the radio interview.

The Canadian oil firm had said in a statement last week that it had signed a letter of intent to acquire Repsol’s stake in two upstream oil blocks in Ecuador, as well as its stake in OCP Ecuador, which manages the nation’s heavy crude pipeline.

Chief financial officer for New Stratus Mario Miranda said that the energy ministry had not yet communicated the decision to the company. He explained that New Stratus met all requirements the government had set, and pledged to respect all environmental and labor liabilities. “The financial capacity is there,” Miranda said in a statement.

 

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