Ecuador pays Oxy $100
Petroleumworld.com, April 14, 2008
Ecuador paid Occidental Petroleum Corp. $100 million Friday
to partially settle a tax dispute, a spokesman for the
Carvajal, a spokesman for Ecuador’s Finance
Ministry, told Bloomberg News that Ecuador paid the Los
Angeles-based oil company after it stripped it of its oil
concession in 2006 over an alleged contract breach.
Occidental and Ecuador disagreed over the amount of value-added
taxes the company paid while doing business in Ecuador.
A London court ordered the South American country to refund
the $100 million, Carvajal said today in a telephone interview.
“We've reached an equitable settlement fair to Occidental
and Ecuador,” Occidental spokesman Richard Kline
told Bloomberg. Ecuador's government also put $30 million
aside pending further arbitration.
case is unrelated to another dispute regarding Ecuador’s
seizure of an Oxy oil field in Ecuador's Amazon region
in May 2006. The field is now operated by Ecuador’s
state-owned oil company PetroEcuador and produces about
95,000 barrels a day.
Shares in Occidental closed down 1.9 percent to $77.15
in trading Friday.
Story by Allen P. Roberts from Los Angeles Business Journal
Los Angeles Business Journal 11 04 08
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