Dec. 9 (Bloomberg) -- Ecuador will renegotiate the oil production contracts of Brazil's Petroleo Brasileiro SA and other foreign oil companies on a ``case-by-case basis'' depending on the return existing agreements give the state.

The renegotiations are necessary because some, but not all, of the agreements between the oil companies and the government fail to share as sufficient amount of profits with Ecuador, said Rafael Correa, Ecuador's president-elect at a press conference in Cochabamba, Bolivia.

Correa, 43, won Ecuador's Nov. 27 election on promises to win a greater share of rising commodities prices, to default on the country's foreign debt if better terms cannot be won from creditors and direct more aid to the poor. A former economics professor, Correa wants a greater role for Petroecuador, the state producer, in oil development.

``Conditions have changed and some contracts do not reflect that; some old contracts pay almost nothing on producing wells,'' Correa told reporters at a summit of Latin American leaders in Cochabamba, Bolivia. ``We need to make sure that the average returns are sufficient for the needs of the country.''

Ecuador's call to renegotiate some of its oil contracts, comes in the wake of moves by Venezuela and Bolivia to transform oil leases into joint ventures with state-companies holding a majority or into contracts where the former owners give up ownership and are paid a fee to operate the well.

Develop Ports

Correa also said he's seeking investment from Chile, Brazil and Venezuela to build refineries capable of handling the country's heavy crude oil.

``It's absurd that Ecuador, an oil exporter, has to import oil to feed its refineries,'' he said.

He hopes to move ahead with plans to build a refinery near the coast with the help of Venezuelan finance and technology from its state oil company, Petroleos de Venezuela SA.

Correa wants to develop ports on Ecuador's Pacific coast that can connect via roads and railways to the Amazonian river systems of Brazil and other countries, allowing goods to move between Asia and the interior regions of South American more easily and cheaply.

Default on debt, particularly debt contracted by military governments, remains an option, he said. He added that he was unlikely to end the country's use of the dollar as legal tender anytime soon, but hoped to use the country's $50 billion of reserves to create a bank to finance development.

``There are some things that are easy to do and almost impossible to undo,'' he said. ``We will have the dollar for some time, but the best way to move away from it is with a regional or South American currency.''

To contact the reporter on this story: Jeb Blount in Rio de Janeiro at jblount@bloomberg.net

Last Updated: December 9, 2006 15:12 EST