The Amazon Pink Dolphin’s Voice: International Tribunal Says Chevron’s Ecuador Arbitration May Proceed & Tribunal Determines Chevron’s Ecuador Arbitration May Proceed

International Tribunal Says Chevron’s Ecuador Arbitration May Proceed

Written By DOW JONES NEWSWIRES

Published February 28, 2012

Dow Jones Newswires

DOW JONES NEWSWIRES

An international arbitration tribunal ruled that it has jurisdiction to hearChevron Corp.’s (CVX) claims against Ecuador that allege the country violated its obligations under the U.S.-Ecuador Bilateral Investment treaty and international law, the company said on Tuesday.

The global oil firm filed its request for arbitration in 2009. The ongoing environmental lawsuit against the company is related to alleged oil damage in Ecuador’s Amazon region by Texaco Inc., which Chevron acquired in 2001.

The company said the trial held in Ecuador’s courts has been marred by fraud. The company also maintains Ecuador has failed to uphold prior settlements and release agreements that the government entered into with Texaco.

“With today’s decision, Chevron will proceed to the merits of its arbitration to hold Ecuador responsible for the fraud being committed through its judicial system,” Chevron vice president and general counsel Hewitt Pate said.

Earlier this month, the tribunal, which is administered by the Permanent Court of Arbitration at The Hague, ordered Ecuador to prevent enforcement and recognition of a $18.2 billion judgment against Chevron issued in Ecuador last year.

In August, a different international arbitration tribunal awarded Chevron and Texaco Petroleum $96 million in a claim against Ecuador related to past oil operations.

Chevron no longer has assets in Ecuador.

Shares were up by 23 cents to $109.86 in recent trading. The stock is up 15% in the past three months.

Source: Fox Business

Tribunal Determines Chevron’s Ecuador Arbitration May Proceed

Permanent Court of Arbitration Panel Establishes Jurisdiction Over Claims Against Republic of Ecuador

SAN RAMON, Calif. — Chevron Corp. (NYSE:CVX) today announced that an international arbitration tribunal, convened under the authority of the U.S.-Ecuador Bilateral Investment Treaty (the “BIT”) and administered by the Permanent Court of Arbitration at The Hague, ruled that it has jurisdiction to hear Chevron’s claims against the Republic of Ecuador. Chevron filed its request for arbitration in 2009, claiming that the Republic violated its obligations under the BIT and international law.

Chevron’s arbitration claim stems from the government of Ecuador’s exploitation of the ongoing environmental lawsuit against the company in Ecuador and its courts’ failure to administer justice in a trial that has been marred by fraud. Additionally, Chevron maintains that the government of Ecuador has failed to uphold prior settlement and release agreements that the government of Ecuador entered into with Texaco Petroleum Company (now a Chevron subsidiary) when the consortium between Texaco Petroleum and Petroecuador was terminated.

“With today’s decision, Chevron will proceed to the merits of its arbitration to hold Ecuador responsible for the fraud being committed through its judicial system. The documentary and video evidence of that fraud is irrefutable. The dysfunction of Ecuador’s judiciary is well documented in both the Lago Agrio case and the recent El Universo case involving a ghostwritten judgment against journalists,” said Hewitt Pate, Chevron vice president and general counsel. “Rather than allow American plaintiffs’ lawyers to cause even more damage for which Ecuador may ultimately be held responsible, the Republic should take this opportunity to pursue a more constructive course.”

On Feb. 16, 2012, the tribunal issued a Second Interim Award ordering the Republic of Ecuador—and all of its branches, including the judiciary—to prevent enforcement and recognition of the $18.2 billion Lago Agrio judgment, both within and without Ecuador. The award expands upon a prior award requiring Ecuador to “take all measures at its disposal to suspend or cause to be suspended the enforcement or recognition within and without Ecuador of any judgment.”

In August 2011, a different international arbitration tribunal convened under the BITawarded Chevron and Texaco Petroleum $96 million in a claim against the Republic of Ecuador related to past oil operations. The tribunal found that Ecuador’s courts violated the BIT and international law through their decade-long delays in ruling on certain commercial disputes between Texaco Petroleum and the Ecuadorian government.

The tribunal’s decision on jurisdiction may be accessed here. A copy of Chevron’s 2009 arbitration claim may be accessed here.

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

Source: SunHerald.com

SELVA Vida Sin Fronteras acknowledges Kevin Schafer’s important contribution towards protecting the highly endangered Amazon pink fresh water dolphin. Title photographs of our “The Amazon Pink Dolphin’s Voice” were taken by Mr. Schafer. 

Editorial: Selvavidasinfronteras.org

Selvavidasinfronteras.wordpress.com

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~ by FSVSF Admin on 28 February, 2012.

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