国际英语新闻：Petroecuador seeks fund to take over Perenco's oil production

QUITO, July 21 (Xinhua) -- The Ecuadorian state-owned oil company Petroecuador said Tuesday that it seeks financing support to keep the production in oil field previously operated by the French exploiter Perenco.

    The French oil company abandoned its facilities in the Andean country due to the embargo imposed by the Ecuadorian government after a dispute over taxes.

    Petroecuador requested the Ecuadorian Finance Ministry for a budget of 10 million U.S. dollars to keep the operations.

    Petroamazonas, a unit of Petroecuador, offered technical and economic aid to impede a reduction on the production of Perenco wells.

    Despite Perenco's disagreement, the Ecuadorian government accused the oil explorer of tax evasion for 327 million dollars as demanded by a local law on extraordinary profits.

    Perenco sued Ecuador for applying such law, but the local government insisted on seizing 327 million-dollar-worth oil from the coproduction by Perenco and its partner Burlington Resources Oriente Ltd, as payment for back taxes.

    Petroecuador said in a communique that Perenco suspended the production as protest for the actions taken by the Ecuadorian government since March.

    According to Petroecuador, Perenco decided to end its work relations with its 342 workers in Ecuador, which left no means to continue the operation in the fields.

    Petroecuador warned that Perenco's retiral could be the cause to finish its contract with the State of Ecuador.

    In May, the International Center for the Settlement of Investment Disputes demanded the end of Ecuadorian government's oil-seizing from Perenco but was refused by the Andean country.