News Releases & Statements
December 04, 2008
Chevron Denial of Justice Claim against Ecuador to Proceed before an International Panel of Arbitrators at the Permanent Court of Arbitration
$1.6 Billion Claim Asserts Violations of the Bilateral Investment Treaty and Judicial Misconduct
SAN RAMON, Calif. - Dec. 4, 2008 -An international panel of arbitrators presiding in the Permanent Court for Arbitration in The Hague has confirmed jurisdiction to hear Chevron's claims against the Republic of Ecuador and its national oil company, Petroecuador. Chevron is seeking $1.6 billion for damages and interest accumulated through December 2008.
In response to the ruling, Chevron issued the following statement:
"This ruling is important for Chevron because this matter will be subject to a neutral and qualified forum outside of Ecuador.
"Ecuadorian courts have continually delayed, refused to rule, or ruled unjustly on seven commercial claims that Texaco Petroleum filed against Ecuador between 1991 and 1993. Chevron believes that these actions constitute a denial of justice under customary international law and are in direct conflict of agreements between the United States and the Republic of Ecuador."
A hearing on the merits of Chevron's complaint is scheduled to begin on April 20, 2009.
Background for Editors:
Chevron and its subsidiary, Texaco Petroleum Company (TexPet), filed the arbitration in December 2006 under the Rules of the United Nations Commission on International Trade Law (UNCITRAL). The seven underlying claims filed in the Ecuadorian courts sought damages caused by Ecuador's breaches of its 1973 and 1977 hydrocarbon production contracts with TexPet and related violations of Ecuadorian law committed by Ecuador and Petroecuador.
The Permanent Court of Arbitration is an intergovernmental organization with over one hundred member countries established by international convention in 1899 to facilitate arbitration and other forms of dispute resolution. The United States acceded to the Court's founding convention in 1900 and Ecuador acceded in 1907.
Ecuador currently faces 9 arbitration claims in various international forums. The total damages claimed exceed well over $5 billion.
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