Japan's Inpex to get compensation from Ecuador for terminating block 18

Japan's largest upstream company Inpex said Tuesday that it had reached an agreement through a subsidiary and its partners with the Ecuadorian government where it will get $318.8 million (Yen 35 billion) in compensation for the termination of contracts related to block 18. Inpex said that it would receive about Yen 19.9 billion of the total compensation in installments within 2018. The block 18 contracts were terminated in 2010 after its subsidiary Teikoku Oil Ecuador and its joint partners failed to reach an agreement with the Ecuadorian government following a policy change that altered the framework of the block tracts from a concession to a service contract, Inpex added. As Inpex plans to report its entitled portion of the compensation from the Ecuadorian government during the current fiscal year ending on March 31, it plans to issue a revised forecast upon re-evaluation.

Platts 21/03/2018

Japan's largest upstream company Inpex said Tuesday that it had reached an agreement through a subsidiary and its partners with the Ecuadorian government where it will get $318.8 million (Yen 35 billion) in compensation for the termination of contracts related to block 18.

Inpex said that it would receive about Yen 19.9 billion of the total compensation in installments within 2018.

The block 18 contracts were terminated in 2010 after its subsidiary Teikoku Oil Ecuador and its joint partners failed to reach an agreement with the Ecuadorian government following a policy change that altered the framework of the block tracts from a concession to a service contract, Inpex added.

As Inpex plans to report its entitled portion of the compensation from the Ecuadorian government during the current fiscal year ending on March 31, it plans to issue a revised forecast upon re-evaluation.

Fuente Original