"The government has set Nov. 23 as a deadline to wrap up the five biggest renegotiations with Spain's Repsol YPF SA (REP, REP.MC), Italy's Eni SpA (E, ENI.MI) and Brazil's state-run Petroleo Brasileiro SA (PBR, PETR4.BR), and Chinese Andes Petroleum and PetroOriental."

"Last month, in a letter sent to high-level government officials, Andes Petroleum Co. and PetroOriental said that they are concerned about the process of changing their current oil contracts, and are considering international arbitration against Ecuador if their contract renegotiations fail and there is no agreement on investment compensation."

"Both companies criticized the negotiation process "by a lack of transparency and unequal conditions in terms of take-it-or-leave-it and heavy state pressure to accept the conditions quickly, without the possibility of reasoned negotiation."

The new service contracts prevent private companies from using the option of international arbitration at the World Bank's International Center for Settlement of Investment Disputes. Instead, legal conflicts would be settled at the United Nations Commission on International Trade Law, or Uncitral."