The State Attorney General’s Office, through an official letter dated January 28, 2022 addressed to engineer Ítalo Cedeño, general manager of EP Petroecuador, urged to exercise, immediately, the repetition action regarding the payment made by the State Ecuadorian in favor of Occidental Petroleum Corporation and Occidental Exploration and Production Company C. República del Ecuador (OXY).
The Attorney General’s Office indicated that this action should be taken against the authorities that made in 2006 the declaration of expiration of the participation contract, which was held by the company Occidental Petroleum Corporation and Occidental Exploration and Production Company C. Republic of Ecuador (OXY) for the exploration and exploitation of block 15 in the Amazon region.
The entity, when asked about the names of these people, said that the entity that must deliver this information is EP Petroecuador.
According to the Attorney General’s Office, by official letter no. 15506 of September 6, 2021 (almost five months ago), requested EP Petroecuador to send the information related to the payment for compensation in favor of Occidental Petroleum Corporation, provided in the arbitration award. such information has not been received to date.
The PGE mentioned in said official letter that “in the event that this State entity does not execute the repetition action, in exercise of the powers provided for in the Constitution of the Republic and the Law, it will be up to the State Attorney General to initiate it (initiate a process) against those who failed to comply with that obligation.”
In 2006, OXY initiated an investment arbitration against Ecuador based on the declaration of expiration of the participation contract that it held for the exploration and exploitation of block 15 in the Amazon region. The Committee of the Center for the Settlement of Investment Disputes (ICSID) in 2015 issued its award for $1,061 million in favor of the oil company. On January 7, 2016, during the presidency of Rafael Correa, the Republic of Ecuador and OXY signed a payment agreement that included nine installments that were paid between February and June 2016.
According to information of the time, it was the Minister of Energy Iván Rodríguez who approved the expiration, after having received a request in this regard from the then president of Petroecuador, Carlos Pareja Yannuzzelli. At that time, the then presidential candidate had also had visibility Rafael Correa, who gained prominence by leading the request for expiration as a presidential candidate. Already as president, he decided not to appoint the arbitrator on behalf of Ecuador, which should participate in the ICSID court.
In his statement to Petroecuador, heThe Attorney General’s Office requested to report on the status of this process and, henceforth, periodically communicate the progress of this process. In addition, it reported that “in the event that this State entity does not execute the repetition action, in exercise of the powers provided for in the Constitution of the Republic and the Law, it will be up to the State Attorney General to initiate it against those who failed to comply with that obligation.”
About the topic, Petroecuador said that its legal department is still analyzing the pronouncement of the Attorney General’s Office. (I)
Source: Eluniverso
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