Learn about the history of Chevron in Ecuador by clicking the links below and watching the videos.
Texaco Petroleum (Texpet) enters into an exploration and production consortium in the Oriente region of Ecuador, as a minority partner, with Petroecuador, Ecuador’s state-owned oil company.
Texaco concludes its partnership in the consortium with Petroecuador. This video, produced by Chevron, details Petroecuador’s oil operations and remediation efforts since the conclusion of the consortium with Texaco Petroleum Company in 1992. Since 1992, Petroecuador has significantly expanded oil operations and production while amassing a poor environmental and operational record. Although Petroecuador agreed to remediate environmental issues resulting from the operations of the former Consortium, it has failed to fulfill this obligation, in part because the Ecuadorian plaintiffs suing Chevron have pressured Petroecuador to stop remediation efforts.
Between 1995 and 1998, Texaco completes a $40 million environmental remediation program reflective of Texaco’s approximate 1/3 share of the oil-producing consortium with Petroecuador. In 1998, the Government of Ecuador declares and certifies that the remediation meets Ecuadorian and international standards and releases Texaco from future obligations or liabilities.
The lawsuit against Chevron in Ecuador was tainted with corruption from the very beginning. At least 20 of the 48 signatures on the document that purported to authorize the lawsuit were faked.
The court appointed expert, Richard Cabrera, suggests a wholly illegitimate and unsubstantiated damage and penalty recommendation against Chevron in excess of $27 billion. Mr. Cabrera is not only paid solely by the plaintiffs, but he openly relies on them to staff his effort while seeking to obstruct Chevron’s representatives from even observing his work. Major portions of his submissions to the court are copied from the plaintiffs own submissions, if not written by them directly. His work product is devoid of scientific content, lacks even the most basic evidentiary support, and assesses monetary relief for alleged environmental damage and health claims he has never even bothers to investigate, inspect or verify.
Shortly before the Ecuador court issues an illegitimate and unenforceable judgment against Chevron, the company files a civil lawsuit under the Racketeer Influenced and Corrupt Organizations Act (RICO) as well as other federal and state laws against the trial lawyers and consultants leading a fraudulent litigation and PR campaign against the company. Through the lawsuit, Chevron seeks a court declaration that any judgment against Chevron in the Ecuador lawsuit is the result of fraud and therefore unenforceable. Chevron also seeks damages associated with the cost of defending the Ecuador litigation.
The U.S. District Court for the Southern District of New York rules that the $9.5 billion judgment against Chevron Corporation in Ecuador is the product of fraud and racketeering, finding it unenforceable.