The Ecuadorian State requested an extension until August 9 before the Federal Court of the United States, in Washington, to present a petition that allows the tax obligations and other significant liabilities owed by Perenco to be deducted from the total amount (USD 412 million) of the arbitration award. to Ecuador.
The oil company won an international judicial process, after 15 years, once a Committee ruled in favor of Perenco under the auspices of the International Center for Settlement of Investment Disputes of the World Bank (ICSID Committee) and who rejected Ecuador’s attempts annul the award in its entirety.
According to what was agreed between the State and the oil company, the payment of the USD 412 million must be made in 60 days. The deadline ends in August. In a statement, issued on July 28, 2021, the Government ratified its willingness to comply with all its international obligations, but asked the Court for an extension.
“Perenco did not oppose this request for an extension. This compensation of pecuniary obligations is important and is recognized in international jurisprudence, especially when the collection capacity is limited because they are companies that are in liquidation and that do not have assets in the country, “says the statement issued by the Ministry of Economy.
They hope that the oil company will honor its debts with the State, while Ecuador will pay the corresponding amount for this award. “Unfortunately, Perenco claims that, having declared itself a” company in liquidation “, the State will pay the entire Award without any guarantee that the same company in liquidation will honor its debts in Ecuador before disappearing.”
They consider it irresponsible for the State not to demand these guarantees and regret the “partial and incomplete” communication strategy initiated by Perenco, as a mechanism to pressure the State to make the payment.
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