Ecuador ordered to pay $1.6 bn to Chevron

[Zorro]

<snip>

Ecuador has been ordered to pay US oil giant Chevron 1.6 billion dollars by an international court in a long-standing dispute over alleged environmental damage, the company said on Thursday.

Chevron filed the complaint at the Permanent Court of Arbitration in The Hague arguing that Quito had violated a bilateral investment agreement. The US firm also said Quito had demonstrated "legal irregularities" in seven large commercial claims for damages on production contracts before Ecuadorean courts.

"This ruling is of utmost importance to Chevron since this matter could be evaluated by a qualified and neutral forum outside Ecuador," the company said in a statement to media.

In April, Chevron rejected a court report holding it liable for 16.5 billion dollars in alleged environmental damage when the company, formerly known as Texaco, extracted crude in the Amazon jungle between 1964 and 1990.

<snip>

More at: http://economictimes.indiatimes.com/News/International_Business/Ecuador_ordered_to_pay_16_bn_to_Chevron/rssarticleshow/3794665.cms