Ecuador's President Noboa demands $1.5 billion early payment for major oil deal
(Bloomberg) 鈥 Ecuador鈥檚 President Daniel Noboa has ordered a consortium seeking to take over the nation鈥檚 top oil asset to pay an entry fee of $1.5 billion by March 11, moving up the deadline by more than three weeks.听
Noboa has warned he will cancel the deal without the early payment.听
鈥淭he motive is simple: If they don鈥檛 respond with the urgency the Ecuadorian people deserves, we will analyze other options,鈥 Noboa said, citing security and social spending needs in a letter to the public he posted on X late Wednesday.
Previously, the consortium of local subsidiaries of Chinese oil company Sinopec and New Stratus Energy Inc. had until April 4 to make the payment. It鈥檚 been pledged as part of a $3.2 billion, 20-year deal to take over the 75,000 barrel per day Block 60, or Sacha oil field.听
While the government has said that the consortium will boost production and revenue from Sacha, the planned handover without a tender has sparked criticism from former oil industry officials, trade unions, and politicians. Luisa Gonzalez, Noboa鈥檚 rival in the April 13 presidential election, said she would rescind it if elected.
New Stratus, listed in Toronto, earlier this week said that it would raise its $600 million share of the payment from creditors including an unspecified off-taker, as well as by selling shares. Petrolia, its local unit, declined to comment on Noboa鈥檚 demand. Sinopec couldn鈥檛 be reached outside normal local business hours.
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