Arbitration Panel Ruling Favours Occidental in Ecuador Tax Dispute
Article from: OGEL 3 (2004), in In the Spotlight
Introduction
Occidental Petroleum Corporation stated on 13 July 2004 that a tribunal of international arbitrators formed under the US-Ecuador Bilateral Investment Treaty had issued its unanimous decision awarding approximately $75 million as compensation for value added tax (VAT) refunds from the company's Block 15 operations in Ecuador that were deemed wrongfully withheld by the Government of Ecuador through 31 December 2003. The tribunal's decision also indicates that similar VAT refunds should be paid going forward. An Occidental subsidiary is the operator of Block 15, with a 60 per cent net ...