Page 13 - LatAmOil Week 28 2021

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Lasso’s decree includes a 100-day action plan (Image: Government of Ecuador)

Lasso unveils new oil policy

GUILLERMO Lasso, the president of Ecuador, will lay the groundwork for the planned sale of
has issued a decree with the aim of facilitating Petroecuador’s chain of 60 filling stations and
private investment in the country’s oil industry. may lead to the staging of competitive interna-
Lasso signed the document at a ceremony in tional tenders for a number of oilfields, pipelines
Quito last week and said he had taken this step and refineries, including the 110,000 barrel per
in a bid to boost the productivity and profitabil- day Las Esmeraldas plant, the 45,000 bpd La
ity of this sector in particularly and of the Ecua- Libertad plant and the 20,000 bpd Shushufindi
dorean economy at large. “We must increase plant, he stated. In turn, these sales will help
and improve our income, and one of the most improve the efficiency and transparency of
important sectors is that of hydrocarbons,” he crude oil transportation and trading operations.
said during the event, which was broadcast on The president did not say how much money
television. Petroecuador might be able to raise through
According to the president, the decree will asset sales and new investment deals. How-
serve as an “immediate plan of action” over the ever, he did indicate that Quito wanted to use
next 100 days. This plan provides for Quito to some of the proceeds to establish a sustainabil-
establish a legal framework that will allow pri- ity fund that could cover the cost of social pro-
vate sector investors to renegotiate existing grammes in communities directly affected by oil
contracts and secure better terms when negoti- development.
ating new contracts, he said. It also calls on the The new policy marks a departure from
government to propose reforms to the country’s Ecuador’s record of extensive government inter-
existing Hydrocarbons Law, he said. vention in the oil sector. Its pro-market tone
Additionally, Lasso said, it gives the national comes as no surprise, given the president’s affili-
oil company (NOC) Petroecuador 60 days ation with the right-leaning Creating Opportu-
to draw up a report on its asset portfolio. This nities Party. ™

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