Ecuador’s President Noboa demands $1.5 billion entry fee by March 11 for top oil asset deal.Ecuadorian President Daniel Noboa has issued a firm warning that he will cancel the oil deal if the consortium fails to make the early $1.5 billion payment by March 11. He emphasized the urgency of the payment, stating that if the companies involved do not act swiftly, the government will explore alternative options to ensure the country’s security and social needs are met.
Noboa communicated this in a public letter posted on the social media platform X late Wednesday.Initially, the consortium, which consists of local subsidiaries of the Chinese oil giant Sinopec and Canada-based New Stratus Energy Inc., had been given until April 4 to complete the payment.
The payment is a key condition in a $3.2 billion, 20-year agreement allowing the consortium to take control of Block 60, commonly known as the Sacha oil field, which produces 75,000 barrels per day.The government has argued that this deal will increase oil production and generate more revenue for the country.
However, the agreement has been met with significant criticism, particularly because it was arranged without an open bidding process. Several former oil industry officials, trade unions, and political figures have expressed concerns about the transparency and fairness of the deal. One of the most vocal opponents is Luisa Gonzalez, Noboa’s main rival in the upcoming April 13 presidential election.
She has pledged to revoke the agreement if she wins the presidency.In response to the financial requirements, New Stratus Energy, which is listed on the Toronto Stock Exchange, recently announced that it plans to secure its $600 million share of the payment through a combination of loans from creditors, including an undisclosed off-taker, and by selling company shares.
Meanwhile, Petrolia, the local subsidiary of New Stratus, declined to comment on the president’s demand for early payment. Efforts to reach Sinopec for a response were unsuccessful outside of normal business hours.
