Ecuador Will Not Confiscate Perenco's Oil Fields Over Tax Debt

Ecuadorean Oil Minister Derlis Palacios said Wednesday that the country will not seize the oil fields of French company Perenco over debts, reports Reuters. This statement comes a day after Ecuador said that it would freeze Perenco's oil income to collect the debt.

Palacios stressed that the OPEC nation wants to settle the more than $300 million in late taxes that Perenco owes in order to stop actions against the company. The outstanding taxes stem from a controversial windfall tax.

"This doesn't mean we will take over its oil fields," said Palacios. "The dialogue from Ecuador's side is open."

Palacios added that the Ecuadorean government will continue to take Perenco's production in order to collect the debt.

Currently producing 26,000 bopd, Perenco extracts oil from the Coca-Payamino and Yaralpa oil fields in the Ecuadorean Amazon on Blocks 7 and 21.