Straight talk from government officials is a good thing. “Do-this-or-we-rip-your-throat-out” straight talk from government officials may not be so good:
Ecuador President Rafael Correa said private oil companies they should leave the country if they don’t invest in their oil fields.
“I will meet with private companies and we are going to speak plainly. They will invest or leave the country,” Correa said during his weekly media address over the weekend. “They won’t continue playing with the country.”
Correa also said that private companies have until March to sign new contracts or “the government will change the rules of the game and the relationship between the companies and the state.”
What kind of change that will be Correa didn’t say, according to Dow Jones, but the government has said in the past it wants to turn foreign firms doing oil work to be strictly service providers producing oil that the state will own. They would also lose the right to arbitrate disputes before the World Bank. Doesn’t that sound like a great relationship?