Ecuador pays Chevron $112 arbitration award

By The Associated Press

 

QUITO, Ecuador (AP) — Ecuador has paid a $112 million arbitration award to Chevron Corp stemming from a 1990s-era oil contract dispute.

The payment confirmed Friday by a company spokesman was ordered in 2011 by a Netherland-based international arbitration panel and later confirmed by U.S. courts and upheld on appeal by the Supreme Court.

President Rafael Correa had threatened to withhold payment and accused the oil giant of seeking revenge for losing an unrelated drilling contamination case in which an oil consortium headed by Texaco was ordered by Ecuadorean courts to pay a $9.5 billion award. Chevron bought Texaco in 2001.

But with the tiny Ecuadorean economy in recession the risks of snubbing badly needed international investors appear to have been too great for Correa's leftist government to ignore.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs