Jungle source: Petrobras is the biggest foreign investor in Ecuador's oil sector
Ecuador to keep talking to Petrobras
Talks between Ecuador and Petrobras to restructure the oil deal covering Block 18 - which hosts the Palo Azul oilfield - will not be jeopardised by a government minister's call for Quito to terminate the agreement with the Brazilian giant.
"While there is no decision on the termination of a contract, that contract is operational ... yes, negotiations will continue," Oil Minister Galo Chiriboga told Reuters in a telephone interview.
Inspector General Xavier Garaicoa yesterday urged the government to end its deal with Petrobras in a contract dispute over the Palo Azul oilfield, Brazilian company's main oil asset in Ecuador.
Garaicoa claimed Petrobras transferred part of its stake in Block 18 to Japan's Teikoku without government approval.
He added a consortium created to exploit a field inside the block had no official authorisation.
"Those are the main reasons" for the termination call, Garaicoa told reporters.
Petrobras, which pumps 35,000 barrels of oil per day in Ecuador, issued a statement denying any wrongdoing.
"Petrobras has at all moments been in contact with the proper authorities and respected the current legal framework," the company said.
Petrobras said the transfer of rights in Block 18 was approved by the oil ministry last year.