International Arbitration Tribunal Orders Ecuador to Pay ConocoPhillips $380 Million for Unlawfully Expropriating the Company...
February 08 2017 - 5:04PM
Business Wire
ConocoPhillips’ (NYSE: COP) wholly owned subsidiary, Burlington
Resources Inc., received an arbitration award of $380 million from
an international arbitration tribunal, constituted under the
International Centre for the Settlement of Investment Disputes
(ICSID), for Ecuador’s unlawful expropriation of Burlington’s
significant investment in breach of the U.S.-Ecuador bilateral
investment treaty.
“The Tribunal’s decision on damages sends a clear message that
governments cannot expropriate investments without fair
compensation,” said Janet Carrig, senior vice president, Legal and
General Counsel. “ConocoPhillips sought to protect its interests to
the fullest degree and the Tribunal acknowledged our legal rights
and the unlawful nature of Ecuador’s actions.”
The decision is subject to potential annulment proceedings, but
the company believes any application seeking to annul the award
would be meritless and ConocoPhillips would strongly defend against
it. The timing and manner of collection remain to be
determined.
The Tribunal also issued a separate decision finding that
Ecuador was entitled to $42 million for limited environmental and
infrastructure impacts associated with the operations of the
Consortium (comprising Burlington and Perenco). The Tribunal noted
that “…while Ecuador also prevailed on part of its counterclaims,
the amount awarded to Ecuador is an extremely small percentage of
the amount claimed.”
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About ConocoPhillips
ConocoPhillips is the world’s largest independent E&P
company based on production and proved reserves. Headquartered in
Houston, Texas, ConocoPhillips had operations and activities in 17
countries, $90 billion of total assets, and approximately 13,300
employees as of Dec. 31, 2016. Production excluding Libya averaged
1,567 MBOED in 2016, and preliminary proved reserves were 6.4
billion BOE as of Dec. 31, 2016. For more information, go to
www.conocophillips.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170208006282/en/
ConocoPhillipsKris Sava, 281-293-1808
(media)kris.sava@conocophillips.comorAndy O’Brien, 281-293-5000
(investors)andy.m.obrien@conocophillips.com
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