Legal News

World Bank Orders Ecuador to Pay $1.77 Billion to Occidental
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

The World Bank’s International Center for Settlement of Investment Disputes, or ICSID, has ordered Ecuador to pay a sum of $1.77 billion in damages to Occidental Petroleum. The award ruling posted on ICSID’s website reads, “Claimants are awarded the amount of $1.769 billion.” Ecuador has also been ordered to pay a “pre-award interest on the above amount at the rate of 4.188 percent per annum, compounded annually from 16 May 2006 until the date of this award.”

Occidental Petroleum filed a request for arbitration in July 2006, after the Ecuadorean government terminated its contracts on vague grounds, and because the company had sold a stake in its operations without the consent of the Ecuadorean government. In classic leftist government ploy, after Occidental set up operations and was producing about 1/5th of Ecuador’s daily crude oil, the government seized the company’s properties and handed it over to the state-controlled Petromazonas.

The ruling of ICISD said Ecuador’s action was “tantamount to expropriation.” The leftist President Rafael Correa of Ecuador told journalists “We’ll ask for it (the ruling) to be declared null and void. We’re used to confronting these abuses, these obstacles, and we’ll continue to defending the integrity of the country.”

  
What
Where


Diego Garcia, the attorney general of Ecuador, said earlier this week that while Occidental was seeking close to $3.4 billion in damages from the smallest member country of the OPEC, Ecuador was ready to pay only $417 million.

However, the ruling comes at an odd time after dragging on for so many years; after the Ecuador embassy in UK provided asylum to WikiLeaks head Julian Assange earning the ire of governments that want Assange’s head.

Prior to termination of its contract, Occidental was the biggest oil investor in Ecuador, producing about 100,000 barrels of crude per day, out of Ecuador’s national average of 500,000 barrels per day.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Litigation Associate Attorney

USA-SC-Columbia

Columbia office is seeking a commercial litigation attorney with 2-4 years of experience.

Apply Now

Attorney with 3-7 years of commercial/complex litigation experience

USA-CA-Cerritos

Cerritos office of our client seeks attorney with 3-7 years of commercial and complex litigation exp...

Apply Now

Insurance Coverage Associate Attorney

USA-IL-Chicago

Chicago office of our client seeks associate attorney with insurance coverage experience. The candid...

Apply Now

Patent Agent with 1 year of electrical engineering experience

USA-CA-San Francisco

San Francisco office of our client seeks entry level patent agent with 1 year of experience. The can...

Apply Now

RELEVANT JOBS

Corporate / Commercial Attorney | Lebanon, NH

USA-NH-Lebanon

Downs Rachlin Martin PLLC seeks an experienced corporate / commercial attorney to join its Lebanon o...

Apply now

Executive Assistant / Office Administrator

USA-TX-Rosenberg

If you have administrative support experience in the legal industry, or even paralegal expertise,...

Apply now

Associate - Mid-Level - GL Group

USA-NY-Valhalla

Defense firm seeking mid-level associate for Westchester office to fill General Liability position. ...

Apply now

Mortgage Compliance Analyst

USA-MN-Minnetonka

Job Description: Rubicon Mortgage Advisors LLC, a locally-owned, boutique mortgage lender is seeki...

Apply now

SEARCH IN ARCHIVE

To Top