Ecuador's President Noboa demands $1.5 billion early payment for major oil deal

(Bloomberg) – Ecuador’s President Daniel Noboa has ordered a consortium seeking to take over the nation’s top oil asset to pay an entry fee of $1.5 billion by March 11, moving up the deadline by more than three weeks. 

Noboa has warned he will cancel the deal without the early payment. 

“The motive is simple: If they don’t respond with the urgency the Ecuadorian people deserves, we will analyze other options,” Noboa said, citing security and social spending needs in a letter to the public he posted on X late Wednesday.

Previously, the consortium of local subsidiaries of Chinese oil company Sinopec and New Stratus Energy Inc. had until April 4 to make the payment. It’s been pledged as part of a $3.2 billion, 20-year deal to take over the 75,000 barrel per day Block 60, or Sacha oil field. 

While the government has said that the consortium will boost production and revenue from Sacha, the planned handover without a tender has sparked criticism from former oil industry officials, trade unions, and politicians. Luisa Gonzalez, Noboa’s rival in the April 13 presidential election, said she would rescind it if elected.

New Stratus, listed in Toronto, earlier this week said that it would raise its $600 million share of the payment from creditors including an unspecified off-taker, as well as by selling shares. Petrolia, its local unit, declined to comment on Noboa’s demand. Sinopec couldn’t be reached outside normal local business hours.