QUITO, Oct. 15 (Xinhua) -- The Ecuadoran government announced Wednesday that it has reached an initial agreement with Spanish oil company Repsol YPF on changes to their contract.

    "We have talked on Monday night with them (Repsol)," Ecuadoran Mines and Oil Minister Derlis Palacios told local media.

    "We have reached initial agreements, (and) no later than next week we will have a final solution," he said.

    The Spanish company has got "a clear understanding of what the Ecuadoran state policy is about," and it "accepted a transitory contract till when new negotiations begin," he said.

    Repsol YPF now is analyzing "details of the contract," the minister said.

    The announcement came four days after Ecuadoran President Rafael Correa spoke of possible sanctions against Repsol YPF because it reduced the oil extraction in the fields in the Ecuadoran Amazons although it had promised to increase it.

    Ecuador's oil extraction reaches some 500,000 barrels per day. Oil is the country's main source of income.

    About a year ago, the Ecuadoran government decided to have foreign oil companies revise their contracts to continue their operation in the country.