• Costa Rica Real Estate

World Bank court orders Ecuador to pay $1.8 billion to US oil firm Oxy

November 2, 2015
QUITO, Ecuador — A World Bank arbitration panel has ordered Ecuador to pay $1.8 billion, plus interest, to U.S. oil firm Occidental Petroleum for cancelling a contract.

Occidental sued Ecuador for $3.37 billion in May 2006, the day after the South American country announced the cancellation of a contract granting it the right to extract 100,000 barrels of oil a day from the Amazon basin — about 20 percent of Ecuador’s output.

The International Centre for Settlement of Investment Disputes (ICSID), a branch of the World Bank, initially ordered Ecuador to pay the company, known as Oxy, $1.77 billion plus interest in a 2012 ruling.

Ecuador’s leftist President Rafael Correa, an economist by training, sought to have the ruling annulled.

Announcing the new ruling, he welcomed the decision to decrease the damages but condemned the lawsuit.

“Another attack on our sovereignty!” he wrote on Twitter.

“We managed to invalidate 40 percent of the original ruling, that is, $700 million less. But they are still ordering us to pay $1 billion.”

He vowed to continue negotiating with the company to further reduce the payout, which amounts to 3.3 percent of Ecuador’s national budget for 2016.

Ecuador says it was within its rights to cancel the contract because Oxy sold a 40-percent stake in the company to Canadian firm Encana in 2000 without its authorization.

Oxy says Ecuador violated a bilateral investment treaty with the United States.

The ruling adds to the budget woes facing Ecuador, the smallest member of oil cartel OPEC, amid falling crude prices and a depreciating currency.

Read the full ruling below:

http://www.documentcloud.org/documents/2500825-icsid-ecuador-oxy.html

You may be interested

Swimming, squeaking and more: 5 sloth facts explained!
Sloth Sundays
98 views
Sloth Sundays
98 views

Swimming, squeaking and more: 5 sloth facts explained!

Sam Trull / The Sloth Institute - January 26, 2020

In honor of Slothy Sunday, Sam Trull of The Sloth Institute shares five sloth fun facts.  1. All sloths are…

USA picks new faces to take on Costa Rica after training camp shift from Doha
La Sele
31 views
La Sele
31 views

USA picks new faces to take on Costa Rica after training camp shift from Doha

AFP and The Tico Times - January 26, 2020

US national team coach Gregg Berhalter announced a 22-man squad Saturday for next weekend's friendly against Costa Rica that features…

U.S. donates $16,000 to help Costa Rica improve environmental reporting
Costa Rica
91 views
Costa Rica
91 views

U.S. donates $16,000 to help Costa Rica improve environmental reporting

The Tico Times - January 25, 2020

A donation from the U.S. Department of the Interior will help Costa Rica's Environment Ministry (MINAE) receive and track environmental…

Do NOT follow this link or you will be banned from the site!