Correa Rejects ICSID Jurisdiction in Oxy Claim

Ecuador's president-elect Rafael Correa does not recognize the authority of the International Center for Settlement of Investment Disputes (ICSID) to preside over US oil company Occidental's (NYSE: OXY) claim against the government.

"[Correa's] main objection is that Ecuador has never agreed, at any moment, to submit itself to ICSID jurisdiction," according to a statement on Correa's official website.

The statement added the disputes "are the exclusive jurisdiction of Ecuadorian courts."

Oxy filed a case with ICSID over the government's mid-May cancellation of its block 15 contract.

Correa disagrees with Ecuador's attorney general naming an arbiter to represent the country in the ICSID case. The move gives weight to Oxy's claims, according to Correa.

Ecuador cancelled Oxy's contract on the block, alleging the US company transferred a 40% stake in block 15 to Canadian oil firm EnCana (NYSE: ENC) in 2000 without government permission. The government also claims Oxy overproduced some wells and did not comply with the block's investment plan.

Block 15 produces roughly 100,000b/d oil, or roughly a third of the country's output.

Visit BNamericas to access our real-time news reports, 10-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Contract Administrator
Expertise: Contracts Administration
Location: Chesapeake, VA
Logistics Coordinator & Optimization Analyst
Expertise: Logistics Management
Location: Billings, MT
Associate Category Manager or Category Manager Job
Expertise: Logistics Management|Purchasing|Supply Chain Management
Location: Denver, CO
search for more jobs

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours