Ecuador Banya Duri Company v Corporacion Estatal Petrolera Ecuatoriana - Sinopec press statement - I-L-Y Oilfield Arbitration Settlement Agreement - 7 December 2023
Country
Year
2023
Summary
... Banya Duri Company and PAM entered into a settlement agreement in Quito, Ecuador in relation to the payment of part of the award in the Ruling. Pursuant to the foregoing agreement, the parties agreed that PAM shall pay part of the award in the Ruling in 11 monthly installments from December 2023, totaling approximately US$34.98 million and to set up coordinated work meetings to determine corresponding payment plans in relation to the remaining award in the Ruling.
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On 8 October 2014, the Applicant entered into the Contract for I-L-Y Oilfield Comprehensive Service Projects in Ecuador (the "I-L-Y Oilfield Projects Contract") with Corporacion Estatal Petrolera Ecuatoriana (the "PAM"). During the implementation of the projects, the parties had disputes on the payments for some increased oil production.
After repeated unsuccessful negotiations, in April 2019, the Applicant served the Notice of Application for Legal Arbitration to the PAM in relation to such contract disputes in accordance with the relevant provisions of the I-L-Y Oilfield Projects Contract, recommending the Permanent International Court of Arbitration in Hague as the arbitration institution to conduct arbitrations in accordance with the arbitration rules of the UNCITRAL Arbitration Rules (1976 Edition).
The arbitration requests made by the Applicant include: the PAM should pay an invoice amount of US$63.29 million for the increased oil production with interest, confirm the Y- 12 well would operate with optimized production capacity and pay US$8.13 million, as well as pay the losses brought to the Applicant due to the default of the PAM and relevant charges for the legal arbitration.
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