Quito, Ecuador: An international arbitration body has ruled Ecuador should pay $1.769 billion (Dh6.16 billion) to Occidental Petroleum Corp for revoking the U.S. company’s operating concession in 2006.
The World Bank’s International Center for Settlement of Investment Disputes says on its website that it found Ecuador did give “fair and equitable treatment” to Occidental.
Ecuador’s president called Friday’s judgement “unacceptable.” President Rafael Correa says his government will appeal and seek the annulment of the damage award.
Occidental filed a claim alleging its property was confiscated illegally when Ecuador cancelled its operating contract in May 2006. The company was pumping about 100,000 barrels of crude a day, or 20 per cent of Ecuador’s output.
Ecuador accused Occidental of illegally selling 40 per cent of its concession to EnCana Corp. of Canada without the Energy Ministry’s authorisation.