Monday, September 10, 2018

International tribunal rules for Chevron in $9.5B judgment

An international tribunal has issued an award in favor of Chevron and its indirect subsidiary, Texaco Petroleum, finding Ecuador violated its obligations under international treaties, investment agreements and international law.

The tribunal unanimously held a $9.5 billion judgment rendered against Chevron in Lago Agrio, Ecuador, in 2011, was procured through fraud, bribery and corruption and was based on claims that had been already settled and released by Ecuador years earlier.

The tribunal concluded the fraudulent Ecuadorian judgment “violates international public policy” and “should not be recognized or enforced by the courts of other States.”

As a matter of international law, this award confirms Chevron is not obliged to comply with the Ecuadorian judgment, according to the oil supermajor, Kallanish Energy learns.

The tribunal held Ecuador breached its obligations under a 1995 settlement agreement releasing Texaco Petroleum and its affiliates from public environmental claims — the same claims on which the $9.5 billion Ecuadorian judgment is exclusively based.

The tribunal found “TexPet spent approximately $40 million in environmental remediation and community development under the 1995 Settlement Agreement” carried out by a “well-known engineering firm specializing in environmental remediation,” and that Ecuador in 1998 executed a final release agreement “certifying that TexPet had performed all of its obligations under the 1995 Settlement Agreement.”

The tribunal found “no cogent evidence” supporting Ecuador’s claim that TexPet failed to comply with the terms of the remediation plan approved by Ecuador.


https://www.shaledirectories.com/blog/international-tribunal-rules-for-chevron-in-9-5b-judgment/

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