“State Policy“, that’s how the National Assembly of Ecuador today declared the defense before the International Centre for Settlement of Investment Disputes (ICSID) on the case against the country by U.S. Occidental Petroleum Corporation (OXY).
With 88 votes in favor and six abstentions, the resolution that supports “the action that drives the Ecuadorian government to protect its interests” and the claim of “nullity” of an arbitration award condemning Ecuador issued last October 5 by the ICSID, was approved.
OXY sued Ecuador before the ICSID in 2006, after the government void its contract of oil extraction in an petroleum zone of the Amazon, for giving, without notifying the State, 40% of their rights to the AEC company, a subsidiary of Encana in Canada.
Ecuador, on its behalf, insists that OXY violated the contract that established a sunset clause of the agreement. (MZ)