QUITO - The president of Ecuador's state oil company Petroecuador resigned on Tuesday, one day after the company slashed its 2008 output target as the government struggles to lift the weakening sector.
Petroecuador said on Monday it was lowering the target to 172,000 barrels per day (bpd) from the previous target of at least 180,000 bpd due to a natural decline in wells and delays in its drilling plans.
"Under the circumstances ... I communicate my decision to resign from the presidency of Petroecuador," Fernando Zurita told reporters at a press conference in Quito.
Zurita, a navy officer with little experience in the oil sector, was named to the post six months ago as the leftist government hoped to overhaul a state company that has seen its production dwindle for several years.
The output of foreign oil companies in Ecuador is also taking a hit after many slashed investment due to a windfall tax that takes nearly all of their extra revenues amid high oil prices. Companies say the controversial tax makes their business inviable in South America's No 5 oil producer.
The record price of crude has helped the government compensate for the drop in state production.
President Rafael Correa, a former economy minister, wants to increase state control over the sector that is one of the Andean country's main sources of revenue.
He said he wants foreign oil firms to drop deals that allow them to keep part of the oil they extract for service contracts because the government wants to keep all the crude.
"The government has had more mistakes than successes in their oil policy, improvising and ensuing into an adventure by naming people who have no experience in the sector," said Augusto Tandazo, an oil analyst who was an adviser to Correa during his presidential campaign in 2006.
"In the private sector there is not clarity from the government."
Petroecuador and government officials did not say who will be Zurita's replacement or if other navy officers holding key posts in the company would be removed.
Ecuador produces around 500,000 bpd, including oil pumped by private companies which accounts for nearly half of all output. The country produced 510,000 bpd in 2007.
Petroecuador said on Monday it was lowering the target to 172,000 barrels per day (bpd) from the previous target of at least 180,000 bpd due to a natural decline in wells and delays in its drilling plans.
"Under the circumstances ... I communicate my decision to resign from the presidency of Petroecuador," Fernando Zurita told reporters at a press conference in Quito.
Zurita, a navy officer with little experience in the oil sector, was named to the post six months ago as the leftist government hoped to overhaul a state company that has seen its production dwindle for several years.
The output of foreign oil companies in Ecuador is also taking a hit after many slashed investment due to a windfall tax that takes nearly all of their extra revenues amid high oil prices. Companies say the controversial tax makes their business inviable in South America's No 5 oil producer.
The record price of crude has helped the government compensate for the drop in state production.
President Rafael Correa, a former economy minister, wants to increase state control over the sector that is one of the Andean country's main sources of revenue.
He said he wants foreign oil firms to drop deals that allow them to keep part of the oil they extract for service contracts because the government wants to keep all the crude.
"The government has had more mistakes than successes in their oil policy, improvising and ensuing into an adventure by naming people who have no experience in the sector," said Augusto Tandazo, an oil analyst who was an adviser to Correa during his presidential campaign in 2006.
"In the private sector there is not clarity from the government."
Petroecuador and government officials did not say who will be Zurita's replacement or if other navy officers holding key posts in the company would be removed.
Ecuador produces around 500,000 bpd, including oil pumped by private companies which accounts for nearly half of all output. The country produced 510,000 bpd in 2007.
