Page 12 - LatAmOil Week 38
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                                               The court case hinges on Texaco’s past activities in Ecuador (Photo: Mongabay)
                         It also ruled that the judgment was unenforce-  and Brazil, all of which have rejected the Ecua-
                         able under international law. Additionally, it   dorean judgment against Chevron.
                         rejected the underlying environmental allega-  Likewise, a US court ruled in 2015 that the
                         tions against Chevron.               judgment against Chevron had been the result
                           The District Court of The Hague upheld that   of fraud.
                         award in full last week, saying: “[The] fraudulent   At that time, US Judge Lewis Kaplan said
                         character of the Lago Agrio judgement and the   that American lawyer Stephen Donziger had
                         proceedings preceding it is common ground   used “corrupt means” to help villagers from the
                         between the parties.”                Lago Agrio area win the $18bn judgment – later
                           The Dutch court also concluded that the   reduced to $9.5bn – against Chevron in Ecuador
                         international tribunal’s orders properly sought   in 2011.
                         to “remove the consequences of a fraudulent   The allegations of environmental damage
                         judgment that was rendered by a corrupt judge.”   related to actions taken by the US giant Texaco,
                         It added: “[Because] none of the setting aside   which was acquired by Chevron in 2001, over a
                         grounds brought forward by Ecuador succeed,   nearly 30-year period between 1964 and 1990.
                         the claims will be denied.”          In 1993, around 30,000 local residents, includ-
                           The new ruling is in line with decisions made   ing several Amazonian indigenous communi-
                         by other courts in Canada, Gibraltar, Argentina   ties, filed suit against Texaco. ™


      Ecuador planning to call tender for




      Esmeraldas refinery in December






                         ECUADOR’S Ministry of Energy and Non-Re-
                         newable Resources will call a tender for the
                         right to operate the Esmeraldas refinery in late
                         December.
                           The ministry made its timeline for the bid-
                         ding contest public earlier this week. Poten-
                         tial investors will be able to submit bids from
                         December 22, it said, and the winner of the
                         tender will be announced on February 12, 2021.
                           The top bidder will have the right to negotiate   Processing and storage facilities at the Esmeraldas refinery (Photo: Morelco)
                         an operating contract with a term of 25 years.
                         Under the contract, the operator will continue   refined fuels to PetroEcuador, which will pay a
                         to take delivery of feedstock for the refinery,   per-barrel fee.
                         which has a throughput capacity of 110,000   The winning bidder will also be obligated to
                         barrels per day (bpd), from PetroEcuador, the   spend around $2.4bn on modernisation projects
                         national oil company (NOC). It will then deliver   at the refinery.



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