Arbitration Panel Ruling Favors Occidental in Ecuador Tax Dispute
LOS ANGELES, July 13, 2004 (PRIMEZONE) — Occidental Petroleum Corporation said today that a tribunal of international arbitrators formed under the US-Ecuador Bilateral Investment Treaty has 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 December 31, 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% net economic interest.
Source: Occidental Petroleum Corp