Occidental Petroleum Corporation filed an arbitration claim against the Government of Ecuador, seeking redress for Ecuador's illegal confiscation of Occidental's Block 15 operations in Ecuador.
The company filed its claim with the International Centre for Settlement of Investment Disputes in Washington DC, invoking the protections of the US-Ecuador Bilateral Investment Treaty.
Occidental has requested the arbitration panel order interim relief by restoring its rights in Ecuador and preventing Ecuador from replacing Occidental with another third party operator in Block 15 until its claims can be decided, a process that could take well over a year.
On Monday, May 15, Occidental received notice that Ecuador was seizing Occidental's Block 15 assets, effective immediately.
The process resulting in this unlawful act of expropriation began more than two years ago shortly after Occidental prevailed, by unanimous decision of an international arbitration panel, in a legal dispute over tax refunds that the Government of Ecuador wrongfully withheld from Occidental.
The panel's decision was subsequently upheld by a London court. Occidental intends to vigorously pursue redress for damages resulting from Ecuador's illegal seizure of its Block 15 assets.
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