The The Ministry of Economy and Finance agreed with Perenco on a plan to comply with the payment established in the arbitration award, putting an end to a historical dispute originated in past administrations (in the governments of Alfredo Palacio and Rafael Correa) due to disrespect for the institutional framework. This was announced a few minutes ago by that same State portfolio.
Pablo Arosemena Marriott, Minister of Economy and Finance, He stressed that the government of President Guillermo Lasso acts with absolute responsibility, always safeguarding the interests of the Ecuadorian State.
He indicated that this agreed payment schedule extends until the end of 2023. Meanwhile, Perenco, through one of its spokespersons, thanked the Ecuadorian State for its determination and respect for the institutional framework.
With this payment mechanism agreed with Perenco Ecuador Limited, a successful solution is reached to a problem that originated from changes in contractual rules in the government period 2007-2017said the minister. He recalled that the arbitration process in the Perenco case began on April 30, 2008, in which the French company originally demanded a payment of $1,423 million as reparation for the damage he claimed to have suffered as a result of the adoption of Law 42 of April 25, 2006.
In this legal body, a minimum participation of the State was established, equivalent to one 50% of surpluses of the oil sale prices not agreed upon or not foreseen, a percentage that through the Executive Decree 662 of October 4, 2007 increased to 99%.
The award was established in $435.18 million, of which Ecuador had to deduct $54.44 million for environmental damages and $6.37 million for arbitration costs and expenses in favor of the State. With this, the net amount of capital was in $374.37 million plus interest. Finally, after cross-checking the values owed to the State through the SRI, this value was established at $351.69 million plus interest. (YO)
Source: Eluniverso
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