Ecuador rejects legal action by Oxy

QUITO
Fernando González, president of the state-owned oil company Petroecuador, this Thursday (May 19) rejected pressure from the transnational Occidental Petroleum (Oxy) transnational in its demands for the return of assets held in that country.

After declaring the expiry of the contract with Oxy, Petroecuador took control of the U.S. corporation’s oilfields and wells, which will continue to be under State control, González said.

Oxy may appeal the sentence, but Petroecuador is not obligated to return anything, the official emphasized, according to the national media.

He noted that the arbitration requested by the U.S. transnational will not prevent Ecuador from "continuing to have control over oilfields that the company had to cede after the ruling annulling its contract and obliging it to transfer its assets."

"I am supported by the law," he emphasized.

The transnational presented a lawsuit for international arbitration against the Ecuadorian government after it declared the expiry of its contract for failing to request authorization in 2000 for the transfer of stocks to Encana.

The declaration of expiry disturbed Washington, whose representatives described the action as "seizure" and conditioned the renewal of free trade agreement negotiations on the canceling of the measure.

In this context, Ecuadorian Foreign Minister Francisco Carrión demanded respect for Ecuador’s legal system. "Just as my country respects U.S. law, they must respect Ecuador’s," he affirmed.