Ecuador's Correa rejects energy nationalization-aide

Published: Tuesday, November 28, 2006, 5:33 [IST]
 

QUITO, Ecuador, Nov 28 (Reuters) Ecuador's leftist Rafael Correa, who looks headed for victory after a presidential election, would be open to foreign oil investment and rejects any energy nationalization, a close adviser said.

''For riskier investments we need to get private investment because the state cannot use its revenues for risky projects,'' Carlos Pareja, who Correa has said may be named chief of the state oil company Petroecuador, told Reuters yesterday.

Pareja also said a Correa government would not push for a nationalization of natural resources. Bolivia's move to nationalize its energy sector earlier this year spooked foreign oil companies and investors.

After exit polls and early official results placed him far ahead in Sunday's election, Correa said Ecuador could renew its membership with OPEC.

Ecuador, South America's fifth-largest oil producer, has a state oil output of around 270,000 barrels of crude per day.

Some of the biggest investors in Ecuador's energy sector are Brazil's Petrobras and Spain's Repsol YPF.

Reuters DH VP0515

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