Oxy wins a compensation ruling against Ecuador
(MENAFN) US-based Occidental Petroleum, also known as Oxy, has won a ruling of USD1.77 billion compensation from the Ecuadorian government for seizing the company's assets in 2006, Reuters reported.
The World Bank's arbitration center (ICSID) has decided that Ecuador must pay the sum in damages to Oxy, but Ecuador's leftist President Rafael Correa, who took office in 2007, said the country would appeal the decision.
It also ordered Ecuador to pay pre-award interest on the amount at the rate of 4.188 percent per annum, compounded annually from 16 May 2006 until the date of the award.
The Ecuadorean government decided to cancel Oxy's contract in May 2006, claiming that the company had sold a stake in its operations without government approval. Oxy filed a request for arbitration in July 2006.
The ruling said that Ecuador's seizure of an oil block operated by Occidental was "tantamount to expropriation".