Legal News

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

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.”


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




Search Now

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney


Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now


Legal Assistant / Paralegal


Tavares boutique and growing law firm is looking for a full-time legal assistant / paralegal to work...

Apply now

Litigation Associate Attorney

USA-CA-San Francisco

Andrus Anderson LLP is a plaintiffs’ firm in San Francisco looking for a full-time associate w...

Apply now

Maine Litigation Attorney


Busy New England business law firm seeks Maine Litigation Attorney based in our Portland, Maine offi...

Apply now

Maine Foreclosure Attorney Operations Manager


Bendett & McHugh is looking for a strong Foreclosure Attorney Operations Manager for our Maine Forec...

Apply now


To Top