Attorney general green lights Petroecuador insurance contracts

Ecuador's attorney general Jose Maria Borja has approved the new insurance contracts signed between state oil giant Petroecuador and its current insurer, Ecuadorian Seguros Colonial, local daily El Universo reported. Petroecuador's board awarded Colonial the insurance contracts for 2003-2004 at the end of October but the decision had to be approved by the attorney general. The US$19.2mn contracts will permit Petroecuador to cut its insurance expenses by US$7mn, according to the paper. Petroecuador's board delayed awarding the insurance contracts several times amid calls from local insurer La Union that the tender should be called off over what it claimed were irregularities that favored the current underwriter.