In 2007, Ecuador's president, Rafael Correa, announced that the country would keep 99 percent of oil profits, up from 50 percent. Ecuador's profit margin caused tension with foreign oil investors.
Overview
In 2006, foreign oil companies complained when a decision was agreed upon that profits should be split 50-50 with any given state.cWhile Correa believed revenues should be distributed more "justly," it was unclear how he thought a 99 percent profit was just and balanced. There are at least three major foreign oil companies that operate out of Ecuador, producing over 500,000 barrels of crude oil every day.c Those companies—Spain's Repsol, France's Perenco and Brazil's Petrobras—would suffer most.
With the decree, Ecuador would net over $830 million a year.c
