Court Upholds Arbitration Court Ruling on Oxy Tax Rebate
A British court has ruled in favor of US oil company Occidental Petroleum (NYSE: OXY) in a US$75mn tax dispute with Ecuador's government, an Oxy spokesperson told BNamericas, confirming local press reports.
Oxy won the US$75mn tax rebate from Ecuador last year in an international arbitration court ruling.
However, Ecuador's government appealed the decision, claiming that the company was wrongly excluded from a tax revision process.
The money corresponds to a rebate for sales tax that Occidental paid Ecuador from 1999-2003.
Ecuador's general prosecutor Jose Maria Borja plans to appeal judge Aikens' decision immediately in the same British court before a panel of three judges, the prosecutor office said in a statement.
Ecuador's government has also accused Oxy of illegally selling a 40% stake in block 15 to Canadian oil firm EnCana (NYSE: ENC) without government permission as well as overproducing on some wells and not complying with its investment plan in the block.
Oxy maintains that it has "scrupulously adhered" to its contractual obligations, according to a previous BNamericas report.
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