Global Trade Alert

On 23 November 2010, the President of Ecuador announced that Petroleo Brasileiro SA (Petrobras) would leave the country. The reason for the departure lies in failed negotiations to change the Brazilian company's oil sharing deal into a services contract. 
 
In an effort to excert more control over its national resources, the government of Ecuador had informed Petrobras that it could remain in the country as a service contractor to be paid a production fee. Under the scheme, the government has full ownership of all oil and gas produced. However, the two parties could not agree on the terms of such a service contract.