The Government of Ecuador announced that it will respect and honor its international commitments, once the payment of compensation to the Perenco oil company has been ratified for violating Public International Law.
Ecuador was notified of the decision issued by the AdHoc Committee of the Arbitration Tribunal, within the framework of the Bilateral Treaty for the Promotion and Protection of Investments between Ecuador and France.
In it, it was ruled that Executive Decree No. 662, of October 4, 2007, violated Public International Law to the detriment of the Perenco oil company. This means that the current Government must assume responsibility for actions and decisions taken by previous administrations, when the State’s participation in oil surpluses was increased from 50% to 99%; In other words, Ecuador unilaterally and illegally increased the State’s utility in Perenco’s participation contracts in Blocks 7 and 21.
In the statement, issued by the Presidency of Ecuador, it indicates that the same Court recognized that the Ecuadorian State has the right to be compensated for environmental damage caused by said company.
The final amount to be paid by the State in favor of Perenco is $ 374,373,154.25 plus interest, after discounting the environmental compensation in favor of Ecuador.
“The Ecuadorian State will respect and honor its international commitments, despite any legal discrepancy that has been expressed in the process. Contact will be maintained with the company to find alternative solutions. “
The Government will request the competent authorities to initiate repetitive actions against the responsible public servants and authorities.
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