Occidental Petroleum Corp., Houston, will receive a $1-billion arbitration award from Ecuador to settle a dispute over the 2006 expropriation of its participation contract for Block 15.
Oxy filed a claim that year seeking reparation for losses following the country’s abrupt termination of the company’s exploration and development contract and the immediate confiscation of the company’s Amazon oil field operations on Block 15 (OGJ Online, May 19, 2006).
The two parties reached an understanding in November 2015 through the International Centre for Settlement of Investment Disputes. Ecuador has made initial payments of $200 million to Oxy, with full payment expected this year.
Oxy ended 2015 with $4.4 billion of cash on hand.
Prior to the seizure by Petroecuador of Block 15 and Oxy’s Eden-Yuturi, Limonchcha, Indillana, Paca Norte, Paca Sur, and Yanaquincha fields, Oxy had produced 100,000 b/d from the blocks, 42,000 b/d net to its interest.