HOUSTON (Reuters) - ConocoPhillips will receive $337 million from Ecuador under a settlement of an arbitration case that the U.S. energy company brought over a 2009 confiscation of assets in the South American country.
A World Bank panel in February had ordered Ecuador to pay $380 million in damages to the oil and gas producer’s subsidiary, Burlington Resources. The subsidiary had stakes in two blocks producing about 22,000 barrels of oil per day that were taken over by the government more than eight years ago.
The settlement includes an offset for a decision awarding Ecuador $42 million on its environmental and infrastructure counterclaims. Burlington is entitled to $24 million through a third-party contribution to the payment, ConocoPhillips said on Monday
ConocoPhillips also said it was pleased to reach a conclusion of the matter. It received $75 million on Dec. 1 from Ecuador and expects to collect another $262 million by April 2018.
In a statement, Ecuador’s attorney general’s office said, “The agreement between Ecuador and Burlington allows us to resolve this controversy and to reaffirm the Ecuadorean state’s commitment to fulfilling its international obligations.”
In 2012, the International Center for Settlement of Investment Disputes ruled Ecuador had unlawfully seized the investments and in February 2016 awarded damages. A stay of the award was lifted in August.
Reporting by Ahmed Farhatha in Bengaluru; additional reporting by Gary McWilliams in Houston and Alexandra Valencia in Quito; Editing by Sriraj Kalluvila and Jonathan Oatis