U.S. Supreme Court Backs Chevron in Treaty Dispute with Ecuador

7 Jun 2016   Ecuador

Chevron offices The United States Supreme Court declined to hear an appeal lodged by the government of Ecuador that contested a $96 million arbitration settlement awarded to the American oil company Chevron. Texaco, the company Chevron bought out in 2001, originally filed the suit against the Central American country for breaking from the terms of oilfield development contracts and international agreements. In effect, the highest court in the U.S. upheld a ruling by the U.S. Court of Appeals for the District of Columbia Circuit, which favored Chevron in an arbitration deal issued by The Hague’s Permanent Council of Arbitration in the Netherlands. Related: Saudi Arabia Raises Oil Prices to Asia But Cut Prices to Europe The arbitration process started in The Hague in 2006 with Texaco claiming that Ecuador’s court system failed to resolve disputes in a timely manner, as the nation had agreed to in a 1997 investment […]

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