Ecuador’s government has reached an agreement with Schlumberger to start repaying a debt accumulated over the last few years, according to a Reuters report. The government also said the oilfield service major had agreed on new investments to the tune of US$1 billion.
The debt, which Schlumberger in March calculated at US$1.1 billion, has been giving the company a headache, pressuring its first-quarter results. Talks on the repayment had stalled for a few months and Schlumberger started to get impatient.
Ecuador, which is the smallest member of OPEC, has had a tougher time than other members. In addition to the oil price slump, the country suffered a devastating earthquake last year, with damages estimated at US$3 billion and more than 660 people killed.