Feb 8 A World Bank panel has ordered Ecuador to
pay $380 million in damages to a subsidiary of U.S.-based
ConocoPhillips for unlawfully expropriating the
company's oil investments.
The settlement is related to an ongoing case where the
energy company had been seeking compensation related to
confiscation of assets.
The subsidiary, Burlington Resources, had stakes in two
blocks operated by French oil and gas company Perenco that were
taken over by Ecuadorean President Rafael Correa's government in
Ecuador had said that the consortium abandoned the area
illegally in a dispute over taxes, whereas the companies argued
that the Correa government expropriated their assets.
"The Tribunal's decision on damages sends a clear message
that governments cannot expropriate investments without fair
compensation," Janet Carrig, senior vice president of
ConocoPhillips's legal and general counsel, said in a statement.
ConocoPhillips said it would strongly defend any application
seeking to annul the settlement.
The timing and manner of collecting the amount are yet to be
determined, the world's largest independent exploration and
production company said.
In a separate decision, the tribunal ordered that Ecuador
was entitled to $42 million for limited environmental and
infrastructure impacts associated with the operations of the
consortium comprising Burlington and Perenco.
(Reporting by Sweta Singh in Bengaluru)