Cable Viewer

Currently released so far... 12079 / 251,287

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 96 97 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/06
1986/05
1987/06
1988/01
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05
1992/01 1992/06 1992/12
1993/10
1996/11
1997/12
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/06 2001/07 2001/10 2001/11
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/11 2002/12
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai
Embassy Freetown
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne
Embassy Nicosia Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Naples
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE Embassy Ulaanbaatar
Embassy Vilnius Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AMGT ASEC AFIN AS AMED AORC AF AM AJ AU AE AR ABLD AG AY ASIG AEMR APER AMBASSADOR ASEAN AA AL ASUP ABUD AX APECO AID AUC ASECKFRDCVISKIRFPHUMSMIGEG ADANA AFFAIRS AND AN ADCO ARM ATRN AECL AADP ACOA APEC AGRICULTURE ACS ADPM ASCH AMEX ACAO ANET AODE ARF ACBAQ APCS AMG AQ AMCHAMS AORG AGAO ADM AFSI AFSN AINF AIT ASEX AORL AGR AO AROC ACABQ ATFN AFGHANISTAN AFU AER ALOW AC AZ AVERY AGMT
BEXP BR BA BRUSSELS BL BM BH BTIO BIDEN BO BT BC BU BY BX BG BK BF BBSR BMGT BTIU BE BD BWC BB BP BN BILAT
CO CODEL CASC CA CFED CH CMGT CW CVIS CI CU CONDOLEEZZA CR CSW CPAS CS CJUS CY CDG CE CG CBW COUNTER CN CKGR COUNTERTERRORISM CWC CJAN CIA CD CLINTON CT CARSON CONS CB CM CLMT CROS CNARC CIDA CBSA CIC CEUDA CHR CITT CAC CACM CVR CDC CAPC COPUOS CBC CBE COM CARICOM CDB CAN COE COUNTRY CLEARANCE CACS CF CL CIS CTM CV CICTE
DR DEA DA DOMESTIC DHS DAO DCM DEPT DTRA DPRK DEFENSE DE DJ DISENGAGEMENT DOD DEAX DOE DK DS
EAGR ECON EFIN EINV EC ETRD ELAB EPET ENRG ECPS EAID EUN EU EAIR ETTC ECIN EIND EWWT ELTN EFIS EK ES EN EG EPA ER EI EZ ET EINVECONSENVCSJA ECONOMICS EXTERNAL ELN ELECTIONS EMIN EINN EFINECONCS ETRDEINVECINPGOVCS ENIV ECUN EINT ENGR ENNP EUR EAP EEPET ETRDEINVTINTCS ENVI EFTA ETRO ESENV ECINECONCS ENVR ECONOMY ECONOMIC EUMEM EAIDS ETRA ETRN EUREM EFIM EIAR EXIM ERD EAIG ETRC EXBS EURN ERNG EINVEFIN ECIP EINDETRD EUC EREL ECA ENERG ENGY ECONCS EINVETC ECONEFIN ESA ETC ETRDECONWTOCS EUNCH
FI FJ FR FTA FREEDOM FTAA FARC FAO FMLN FBI FOR FOREIGN FINANCE FO FISO FDA FAC FOI FM FAS FINR
GOV GAERC GT GG GM GV GH GOI GA GTIP GR GZ GE GCC GY GANGS GL GLOBAL GERARD GF GAZA GTMO
HR HO HA HK HUMAN HU HILLARY HSTC HUMOR HEBRON HI HURI HYMPSK
IR IWC IN IZ ICAO IV IRS IC IS IT IZPREL IRAQI IO IAEA ID ITPHUM ITPGOV ITALIAN IPR INRB IMO ITALY ICRC INTERPOL IQ ICTY INTELSAT IEFIN IA INR IRC IACI ITRA IL ICJ INTERNAL ISRAELI INMARSAT ITU ILC IBRD IMF ILO IDP ITF IBET IGAD IEA IAHRC ICTR IDA INDO IIP INRA INRO IRAJ IF
JA JP JO JOSEPH JOHNNIE JM JUS JAMES
KJUS KSCA KOLY KTFN KCRM KPAO KMDR KDEM KIDE KSTH KOMC KISL KN KNNP KS KIPR KMPI KZ KG KRVC KICC KIRC KTIA KTIP KWMN KVPR KV KHLS KU KIRF KR KACT KPKO KTDB KGHG KFRD KCOR KE KSUM KPAL KSEP KSTC KGIC KFLO KAWC KUNR KNPP KNEI KBIO KPRP KWBG KMCA KCIP KTEX KGIT KNSD KCFE KLIG KFLU KBCT KOMS KBTS KCRS KGCC KDRG KWMM KAWK KHIV KSPR KRAD KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KOCI KPAI KHSA KTLA KO KFSC KVIR KX KFTFN KHDP KPLS KSAF KMFO KRCM KCSY KSAC KPWR KTRD KID KWNM KMRS KICA KRIM KSEO KPOA KCHG KREC KOM KRGY KCMR KSCI KFIN KVRP KPAONZ KCGC KNAR KMOC KCOM KESS KAID KNUC KWAC KMIG KSEC KIFR KDEMAF KPIN KPRV KBTR KERG KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KNUP KTER KDDG KPAK KREL KNNPMNUC KRFD KHUM KDEV KCFC KWWMN KTBT KWMNCS KJUST
LE LY LU LTTE LI LO LH LG LAB LA LABOR LOG LT
MARR MNUC MASS MX MOPS MCAP MIL MO MU MEPI MR MDC MPOS MEETINGS MD MTCRE MK MUCN MY MASC MRCRE ML MA MEPP MAR MAPP MP MT MAS MTS MLS MI MERCOSUR MV MEDIA MILI MG MW MIK MTCR MARAD MEPN MC MZ MOPPS MAPS MCC MASSMNUC MQADHAFI MTRE
NZ NZUS NU NL NATO NO NAFTA NDP NIPP NP NS NPT NI NATIONAL NPG NGO NG NK NSSP NRR NSG NSC NPA NORAD NT NW NEW NH NSF NV NR NE NSFO NC NA NAR NASA
OREP OTRA OIIP OPRC OVIP OPIC OEXC OAS OSCE ODIP OSAC OPDC OFDP OIE OECD OPCW OVP OPAD OFDA OIC OSCI OMIG OBSP ON OCS OCII OHUM OES OTR OFFICIALS
PGOV PTER PREL PINR PHUM PREF PROP PK PARM POL PE PINS PSOE PAK PBTS PHSA PAO PM PF PNAT POLITICS PARMS PBIO PSI POLINT POLITICAL PARTIES PL PA PO PGOVLO PORG PGOVE PLN PINF PRELP PAS PPA PRGOV PUNE PG PALESTINIAN POLICY PROG PDEM PREFA PDOV PCI PRAM PTBS PSA POSTS PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PBT PGIV PHUMPGOV PCUL PSEPC PREO PAHO PMIL PNG PP PS PHUH PEPR PINT PU PECON POGOV PINL PKFK PY PFOR PHALANAGE PARTY PMAR PHUMPREL PHUS PRL PGOC PNR PGGV PROV PTERE PGOF PHUMBA PEL POV
QA
RS RICE RUPREL RU RIGHTS RO RW RSP RP REACTION REPORT RCMP RSO RF RFE RM RIGHTSPOLMIL ROBERT REGION
SENV SMIG SNAR SOCI SCUL SW SP SZ SA SY SENVKGHG SU SF SAN SR SO SHUM SYR SAARC SL SI SNARCS SWE SN SARS SPCE SNARIZ SCRS SC SIPDIS SEN SNARN SPCVIS SYRIA SEVN SSA STEINBERG SG SIPRS SH SOFA SANC SK ST
TPHY TRGY TBIO TSPA TW TC TX TU TI TN TS TT TO TH TSPL TIP TP TERRORISM TURKEY TD TZ TFIN TNGD TINT THPY TBID TF TL TV TAGS TK TR TRSY
UNGA UN UNSC UZ USEU US UK UP USTR UNMIK USUN UNESCO UNHRC UY UNO UG UNDC UAE UNAUS UNDESCO UNHCR UNEP UNCHC UNFICYP UNCHR USNC UNIDROIT UNCSD UNDP UNC UNODC USOAS UNPUOS UNCND USPS UNICEF UV UNCHS UNVIE UE USAID
VN VZ VT VE VTPREL VM VI VAT VC
WTO WHO WS WTRO WITH WTRQ WBG WI WHA WMD WMO WIPO WHTI WFP WB WWARD WA WEU WZ
XF XK XM XV XR XG XT XA XH XL XS XW XY XE XD XZ XX XTAG XQ XB XU XI XC
YM YI YMCS YE
ZR ZP ZI ZANU ZU ZO ZB ZL ZK ZF ZEALAND ZN ZA ZOELLICK ZJ

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 07QUITO1091, ANOTHER U.S. OIL COMPANY PULLING OUT OF ECUADOR

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07QUITO1091.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07QUITO1091 | 2007-05-15 13:01 | 2011-05-02 00:12 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Quito

`

    VZCZCXYZ0655
    OO RUEHWEB

    DE RUEHQT #1091/01 1351332
    ZNR UUUUU ZZH
    O 151332Z MAY 07
    FM AMEMBASSY QUITO
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 6972
    INFO RUEHBO/AMEMBASSY BOGOTA PRIORITY 6647
    RUEHCV/AMEMBASSY CARACAS PRIORITY 2546
    RUEHLP/AMEMBASSY LA PAZ MAY 0589
    RUEHPE/AMEMBASSY LIMA PRIORITY 1653
    RUEHGL/AMCONSUL GUAYAQUIL PRIORITY 2309
    RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
    RUEATRS/DEPT OF TREASURY WASHDC PRIORITY

` `

    UNCLAS QUITO 001091

    SIPDIS

    SENSITIVE
    SIPDIS

    DEPT FOR WHA/EPSC FAITH CORNEILLE
    TREASURY FOR SGOOCH

    E.O. 12958: N/A
    TAGS: ECON EPET EINV EC
    SUBJECT: ANOTHER U.S. OIL COMPANY PULLING OUT OF ECUADOR

    Reftel:  06 QUITO 2147

    ¶1.  (SBU) Summary:  Conoco Philips has decided to sell its assets in
    Ecuador.  Conoco acquired several production and exploration blocks
    in Ecuador when it purchased Burlington Resources in 2006, and
    concluded that the Ecuadorian assets are not economically attractive
    compared to other holdings in its portfolio.  With Conoco's
    departure, City Oriente is the last U.S.-owned operating oil company
    in Ecuador (of the two other remaining U.S. companies, one produces
    natural gas and the other is a portfolio investor).  End Summary.

    ¶2.  (SBU) Herb Vickers, General Manager of Burlington Resources
    Ecuador (acquired by major oil company Conoco Phillips in May 2006)
    informed the Ambassador on May 10 that Conoco has decided to dispose
    of its assets in Ecuador.  Conoco had tried to privately arrange a
    purchase with some of its business partners in Ecuador, but those
    partners backed out.  Conoco will now open a data room so potential
    buyers can review its assets.  Conoco informed the GOE of its plans,
    and wanted to advise the Embassy as well.

    ¶3.  (SBU) Conoco has minority shares in two blocks in Ecuador
    currently producing oil (Blocks 7 and 21), which are operated by the
    French company Perenco.  Conoco also holds the rights to two
    exploration blocks (Block 24 is wholly owned and Block 23 is owned
    jointly with Argentine firm CGC).  Both exploration blocks have been
    in force majeure for years due to problems with indigenous and
    environmental groups opposed to petroleum operations.

    ¶4.  (SBU) Vickers explained that a large petroleum company like
    Conoco requires a high rate of return for its assets, and the
    holdings in Ecuador would be hard pressed to reach that threshold.
    Returns in Ecuador deteriorated with the revenue sharing
    requirements imposed by the 2006 amendment to the Hydrocarbon Reform
    Law.  Further complicating the equation is uncertainty regarding
    additional changes that might be imposed by the Correa
    administration, which, when incorporated into estimates of future
    returns, further reduce the financial attractiveness of the
    Ecuadorian holdings.

    ¶5.  (SBU) Conoco first attempted to sell its assets in Ecuador to
    Perenco, which was interested and close to finalizing a sale in
    December 2006.  Perenco said that it backed out of the purchase
    because it did not want to take on the exploration blocks that
    Conoco was trying to sell as port of the package.  However, Vickers
    speculates that Perenco withdrew due to uncertainty over the
    direction the new Correa government might take.  (Other sources
    ascribe Perenco's non-interest to the death of the French owner in a
    December 2006 French Alps skiing accident, and his heirs' desire to
    sell their Ecuadorian operation.)

    ¶6.  (SBU)   Vickers said Conoco tried to package the production and
    exploration blocks together, so that the buyer would take over a $1
    million guarantee that the company might have to pay if it abandons
    the exploration blocks.  However, when Conoco opens a data room for
    its assets, it will no longer try to sell all its blocks as a
    package, but would be willing to give away the exploration blocks to
    any interested company.  Vickers said that there is interest from
    Ecuadorian operators for the production blocks, but little interest
    in the exploration blocks due to the difficulties with indigenous
    and environmental interests.  Vickers speculated that the government
    might cancel its exploration rights, rather than see a different
    company attempt to explore the area, given Energy Minister Acosta's
    statements that he wants to limit new exploration.  If so, that
    would also cancel Conoco's guarantee.

    ¶7.  (SBU) Vickers said that Conoco is framing its departure as a
    financial decision following the consolidation of Conoco's and
    Burlington's assets.  Given Conoco's other holdings in the region,
    particularly Peru where indigenous groups also oppose its
    activities, Conoco does not want to give any public play to the
    political uncertainty that went into its calculations or the
    indigenous problems that also have hampered its operations.
    However, Vickers speculated that the international NGO community
    will paint Conoco's departure as a win for environmentalists.

    ¶8.  (SBU) Comment.  Ecuador's difficult and uncertain investment
    climate, particularly in the petroleum sector, was an important
    factor behind the Conoco decision to withdraw and explains its
    inability even to give its exploration rights gratis to another oil
    company.  This is the second time it has left (it also pulled out in
    the early 1990s), rejoining the list of U.S. companies that have
    left Ecuador (among those that have left in the last 15 years:
    ARCO, Exxon, Maxus, Occidental, Tenneco, Texaco, Unocal, and
    Vintage).  Vickers, who also worked in Indonesia, said that
    Indonesians kept pressing for more benefits from foreign oil
    companies, but knew not to push the foreign investors over a line
    that would force them to leave.  Ecuador, he said, does not know
    where that line is.

    ¶9.  (SBU) With Conoco/Burlington's withdrawal, U.S. participation in
    Ecuador's oil and gas sector is confined to City Oriente, EDC (Noble
    Energy), and Murphy Oil.  City Oriente, a small, family-operated
    company, is the sole U.S.-owned company producing oil in Ecuador.
    City, like Conoco, is worried about its ability to maintain its
    Ecuador operation and has filed for international arbitration over
    the conditions imposed unilaterally by the hydrocarbons law.  Noble
    Energy produces natural gas in offshore Block 3 to supply their
    electricity generator, Machala Power.  Noble Energy has filed for
    international arbitration to recover $60m owed by the GOE for
    electricity sold.  Murphy Oil, based in El Dorado, Arkansas, is a
    20% portfolio investor in Repsol YPF's Block 16.  Income from Murphy
    Oil's share of production fell from $7.7m in 2006 to $4.1m in 2007
    due to increased royalty payments mandated in a 2006 amendment to
    Ecuador's Hydrocarbons Law.

    JEWELL

`