Ecuador’s government expects a World Bank arbitration panel to reach a decision this month in a $3.37 billion dispute with Occidental Petroleum Corp., the largest onshore crude producer in the continental U.S.
The World Bank’s International Centre for Settlement of Investment Disputes has finished all stages of the arbitration process and should announce its final decision by Oct. 9, Ecuador’s Attorney General’s office, which represents the government in the case, said today in an e-mailed statement.
Ecuador’s government said it shouldn’t be required to pay the Los Angeles-based oil company more than $417 million, according to the Attorney General’s office. Occidental is requesting $3.37 billion, according to the statement.
Ecuador stripped Occidental of its oil concession in 2006 over an alleged contract breach, prompting the company’s complaint to the panel.
Occidental’s press office didn’t immediately respond to a telephone message seeking comment.