January 24, 2011 / 5:36 PM / 9 years ago

Ecuador signs five new oil service contracts

* Agreements follow two years of talks

* Cover small fields, 6 pct of national output

QUITO, Jan 24 (Reuters) - Ecuador signed new service contracts on Monday with five companies that operate small fields in the South American OPEC member, ending two years of talks with the country’s leftist government.

The deals follow negotiations with President Rafael Correa’s administration, which has been pushing resource nationalism policies that some analysts say could dampen foreign investment in the country. [ID:nN23151661]

Oil Minister Wilson Pastor told reporters the latest contracts would provide some $180 million in investment by the companies over the next three years.

The companies that signed new deals on Monday were Repsol (REP.MC), Tecpecuador, Petroleos Sudamericanos, Petrobell and Consorcio Pegaso, he said.

The output of the fields they work at is 6 percent of the nation’s total production of around 475,000 barrels per day.

Under the new contracts, the government will pay a tariff for the operation of the fields and will receive all the proceeds from production. (Reporting by Santiago Silva and Alexandra Valencia; Writing by Daniel Wallis; Editing by Lisa Shumaker)

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