[Marxism] Ecuador puts 99% tax on windfall profits of oil companies

Joaquin Bustelo jbustelo at gmail.com
Fri Oct 5 17:00:02 MDT 2007


 
This pretty much speaks for itself.

Joaquin

Oct 5 (Reuters) - President Rafael Correa of Ecuador has issued a surprise
decree ordering foreign oil companies to hand over 99 percent of the extra
crude revenues they earn over a benchmark price set in their contracts.

The law previously obliged them to hand over half of the extra windfall
revenue, and the companies could lose a total of $830 million a year from
the change.

The average benchmark price in the contracts is about $23 a barrel, while
Ecuador's Napo and Oriente crudes traded at an average of around $60 a
barrel in August.

[http://www.reuters.com/article/companyNewsAndPR/idUSN0521849020071005]





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