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Prosecution sees a “legal victory” in reduction of payment for Oxy
Posted On 04 Nov 2015
An illegal act and another out of competition affected the reduction of the compensation the Ecuadorian government shall pay to the multinational oil company Occidental (Oxy), for having terminated a contract they had in 2006.
This emerges from the final decision adopted by an international arbitration tribunal, and which was notified to Ecuador on Monday.
The Centre for Settlement of Investment Disputes (ICSID) ordered the state to pay $ 1.061’775.000. The Prosecution notes that this amount is 68.5% less than the initially intended by Oxy.
The new amount in favor of Oxy is based on such compensation, for the ICSID, it should not be calculated according to a value of block 15 to 100%, but 60%. And about it it was recalled that the Court had already established that the value of the block amounted to $ 2.359’500.000.
