France’s Perenco has reached a payment agreement with Ecuador

The dispute with Brinko Oil Company ended. Ecuador has set a schedule to pay the $374.3 million it owes to arbitration.

The French oil company Perenco Came to me agreement with Ecuador for him Compensation of one million dollarsafter the first victory in international arbitration.

“The Ecuadorean government recently announced that Perenco has reached an agreement with Ecuador,” Perenco told PRIMICIAS.

International arbitration award by Breach of oil contracts Forced Ecuador to pay Perenko $374.3 million.

before complying with the ruling, Ecuador asked Perenco to pay religion US$35.7 million each Income tax and Outstanding Attention from 2002 to 2006.

The lack of agreement between the two parties reached such a point Perenco has requested that accounts be frozen in Ecuador In Luxembourg warned of similar actions in Singapore and the United Kingdom.

historical dispute

Perenko arrived in Ecuador in 2002after purchasing from Kerr McGee 57.5% of the shares in Block 7 and 53.7% in Block 21.

The Dispute between Perenco and Ecuador It arose after then-President Rafael Correa signed Decree 662, which imposed Convertible oil companies to the state 99% of your profits Unusual because of the high global oil prices.

Perenco interpreted it as Violation of signed contracts With Ecuador, which had no such provision.

French oil company Submit an arbitration international against Ecuador in April 2008.

Finally pay taxes

After years of disagreement, on October 26, 2022, Perenco finally paid the taxes He owes it to the Internal Revenue Service (SRI).

It did so under the Economic Development Act, which limited the choice to debtors Mediation of your tax debt.

Under this system, in exchange for repayment of the principal, the SRI can waive a portion of the interest, penalties and surcharges.

Once this debt was settled, Ecuador agreed to sign a Schedule to pay Perenco Millionaire Arbitration Award.

According to Perenko, “Ecuador executed A The first batch As part of an agreed timeline that extends through 2023.”

More expenses for prizes

In addition to paying Perenco, Ecuador faces other risks Final Millionaire Awards Arbitration in 2023.

Of the 26 pending arbitration cases, eight could be executed in 2023, according to a report on potential liabilities from the Finance Ministry.

those eight cases It will represent US$2,850 million. If they are against Ecuador, the The government will have to borrow to cover the payments.

Million dollar case

one of the Awaiting arbitration Against Ecuador he raised it People Oil CompanyFounded in Singapore.

Gente Oil, which operates the Singue oil field, has sued Ecuador for alleged breach of contract. The oil company cited the demand to reduce the rate paid by the state.

a International Arbitration Courtadministered by the Permanent Court of Arbitration, Condemned Ecuador to pay $11.5 million to Gente Oil. Ecuador provided a annulment act And the process continues.

But Higher risk for financial accounts has something to do with it control Brought to you by the American Oil Company chevron. According to the Ministry of Finance, Ecuador could face a up to 2,000 million US dollars for this case.

The International Tribunal in The Hague has already issued a ruling v. Ecuador in August 2018, for the “alleged denial of justice” to the US oil company.

Ecuador has appealed to a court in the Netherlands in this case, and so the process continues.

The alleged denial of justice, according to Chevron, came after an Ecuadorean court ruled in favor of A A group of those affected by Lago Agrio for alleged pollution caused by running TexacoLater acquired by Chevron.

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