Ecuador may expel foreign oil companies

President Rafael Correa of Ecuador has threatened to expel foreign oil companies operating in the country and to nationalise installations at an oil field operated by Petrobras, the Brazilian state oil company.

The new threats add to tensions with Brazil over the expulsion last month of Odebrecht, a Brazilian construction company that built a hydroelectric dam in the country, and seizure of its assets by the Ecuadorean army.

Many in Brazil were alarmed by Mr Correa's decision to send troops to occupy Odebrecht's plant while negotiations were still in progress.

Mr Correais angry at slowing production at oil fields operated by foreign oil firms such as Petrobras, Repsol-YPF of Spain and Andes Petroleum of China.

"Do not play with fire. Either increase production or you will have to leave the country," news agencies reported him as saying.

Author: Jo Amey