Identifier
Created
Classification
Origin
09QUITO196
2009-03-18 21:54:00
CONFIDENTIAL
Embassy Quito
Cable title:
ANOTHER U.S. OIL COMPANY LEAVES ECUADOR
how-toVZCZCXYZ0014 RR RUEHWEB DE RUEHQT #0196 0772154 ZNY CCCCC ZZH R 182154Z MAR 09 FM AMEMBASSY QUITO TO RUEHC/SECSTATE WASHDC 0184 INFO RUEHBO/AMEMBASSY BOGOTA 8051 RUEHCV/AMEMBASSY CARACAS 3465 RUEHLP/AMEMBASSY LA PAZ MAR LIMA 3113 RUEHMD/AMEMBASSY MADRID 1832 RUEHGL/AMCONSUL GUAYAQUIL 4205 RHMFISS/DEPT OF ENERGY WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHDC
C O N F I D E N T I A L QUITO 000196
SIPDIS
DEPT FOR WHA/EPSC FAITH CORNEILLE
USTR FOR BENNETT HARMAN
E.O. 12958: DECL 3/19/2019
TAGS: EPET ENRG EINV ECON EC
SUBJECT: ANOTHER U.S. OIL COMPANY LEAVES ECUADOR
REFTEL: A) QUITO 173
B) 08 QUITO 983
C) 08 QUITO 681
Classified By: DCM Andrew Chritton, Reasons 1.4 (b&d)
C O N F I D E N T I A L QUITO 000196
SIPDIS
DEPT FOR WHA/EPSC FAITH CORNEILLE
USTR FOR BENNETT HARMAN
E.O. 12958: DECL 3/19/2019
TAGS: EPET ENRG EINV ECON EC
SUBJECT: ANOTHER U.S. OIL COMPANY LEAVES ECUADOR
REFTEL: A) QUITO 173
B) 08 QUITO 983
C) 08 QUITO 681
Classified By: DCM Andrew Chritton, Reasons 1.4 (b&d)
1. (U) On March 12, as planned, Spanish oil company Repsol signed a
new oil contract with the Government of Ecuador (details of the
agreement can be found in reftel A). The same day, it bought out
U.S. minority partner Murphy Oil's share of the petroleum consortium.
On March 13, Murphy announced the sale of its Ecuadorian holdings on
its website, noting that the sale was effective March 1.
2. (C) A Murphy representative told econoff in February that even if
Murphy sold its share of the Repsol consortium, the company did not
plan to withdraw its international arbitration case challenging
Ecuador's windfall petroleum revenue tax. The representative was not
available after the sale was concluded to confirm whether Murphy
still intends to pursue its arbitration case.
3. (C) Comment: Murphy's departure follows that of another U.S. oil
company, City Oriente, in August 2008 (reftel C). With these
departures, Burlington is the sole remaining U.S. company with an
investment in Ecuador's oil sector, and it too wants to sell its
Ecuadorian operations. U.S.-owned Noble Energy still operates a
natural gas field, and, bucking the departure trend, Ivanhoe Energy,
a Canadian-registered company with U.S. investment, plans to invest
in an Ecuadorian heavy oil field (ref B).
HODGES
SIPDIS
DEPT FOR WHA/EPSC FAITH CORNEILLE
USTR FOR BENNETT HARMAN
E.O. 12958: DECL 3/19/2019
TAGS: EPET ENRG EINV ECON EC
SUBJECT: ANOTHER U.S. OIL COMPANY LEAVES ECUADOR
REFTEL: A) QUITO 173
B) 08 QUITO 983
C) 08 QUITO 681
Classified By: DCM Andrew Chritton, Reasons 1.4 (b&d)
1. (U) On March 12, as planned, Spanish oil company Repsol signed a
new oil contract with the Government of Ecuador (details of the
agreement can be found in reftel A). The same day, it bought out
U.S. minority partner Murphy Oil's share of the petroleum consortium.
On March 13, Murphy announced the sale of its Ecuadorian holdings on
its website, noting that the sale was effective March 1.
2. (C) A Murphy representative told econoff in February that even if
Murphy sold its share of the Repsol consortium, the company did not
plan to withdraw its international arbitration case challenging
Ecuador's windfall petroleum revenue tax. The representative was not
available after the sale was concluded to confirm whether Murphy
still intends to pursue its arbitration case.
3. (C) Comment: Murphy's departure follows that of another U.S. oil
company, City Oriente, in August 2008 (reftel C). With these
departures, Burlington is the sole remaining U.S. company with an
investment in Ecuador's oil sector, and it too wants to sell its
Ecuadorian operations. U.S.-owned Noble Energy still operates a
natural gas field, and, bucking the departure trend, Ivanhoe Energy,
a Canadian-registered company with U.S. investment, plans to invest
in an Ecuadorian heavy oil field (ref B).
HODGES