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After remission, heavy crude oil pipelines dismisses arbitration demand
Posted On 28 Mar 2019
Ecuadornews:
Heavy Crude Pipeline withdrew an international arbitration claim filed in March 2018 against Ecuador at the UN, in which it claimed at least $ 250 million from the country.
That demand was filed last March, due to disagreements in tax matters “that have been resolved after an extraordinary fiscal regularization occurred last December (tax remission).”
This was published by El Economista de España, based on the reports of Repsol, a partner company of OCP with 29.6% of the shares, and which were presented to the National Securities Market Commission (CNMV).
Its shareholders also include, in addition to Repsol, other oil companies, such as the Chinese Andes Petroleum and Sinopec, the Brazilian company Petrobras, the Italian company ENI, the French company Perenco and the US company Occidental Petroleum.
The information sent to the CNMV includes the news of the withdrawal of the lawsuit, together with the conclusion of other lawsuits directly maintained by Repsol with the Ecuadorian authorities.
The arbitration referred to the treatment of the subordinated fiscal debt issued to finance the operations of OCP, by the Internal Revenue Service of Ecuador (SRI), which had been in the national courts for about fifteen years. The referral (which was the forgiveness of fines, surcharges and interest on tax debts) occurred in December. A few days ago it was learned that Repsol paid about $ 20 million in profits to its workers. (I)
