In September 2009, Chevron initiated arbitration against Ecuador under the U.S.-Ecuador Bilateral Investment Treaty (BIT) for breaches of contractual obligations under settlement and release agreements Ecuador had entered into with TexPet in 1995 and 1998 and for breaches of various BIT obligations.
On September 18, 2013, the international arbitration tribunal issued a Partial Award (2.5 MB) in favor of Chevron and its subsidiary, Texaco Petroleum Company (TexPet). The Tribunal found that the Settlement and Release Agreements that the government of Ecuador entered into with TexPet released TexPet and its affiliates of any liability for all public interest or collective environmental claims.
On February 7, 2013, the international arbitration tribunal ruled (673 KB) that the Republic of Ecuador has violated the tribunal’s prior interim awards by not preventing the attempted enforcement of an $18 billion judgment against Chevron.
In prior rulings, (30 KB) the tribunal put the Republic on notice that if Chevron’s arbitration ultimately prevails, “any loss arising from the enforcement of (the Lago Agrio judgment) may be losses for which the (Republic) would be responsible to (Chevron) under international law.”
In February 2012, the tribunal had issued a Second Interim Award (455 KB) ordering the Republic—and all of its branches, including the judiciary—to take all necessary actions to prevent enforcement and recognition of the Lago Agrio judgment, both inside and outside of Ecuador. That award expanded upon an earlier award (595 KB) requiring Ecuador to “take all measures at its disposal to suspend or cause to be suspended the enforcement or recognition within and without Ecuador of any judgment.”
Fourth Interim Award (672 KB)
PCA Decision on Jurisdiction (1.2 MB)
Second Interim Award (1.2 MB)