QUITO, Ecuador – Ecuador has paid a $112 million arbitration award to Chevron Corp stemming from a 1990s-era oil contract dispute.
The payment confirmed Friday by a company spokesman was ordered in 2011 by a Netherland-based international arbitration panel and later confirmed by U.S. courts and upheld on appeal by the Supreme Court.
President Rafael Correa had threatened to withhold payment and accused the oil giant of seeking revenge for losing an unrelated drilling contamination case in which an oil consortium headed by Texaco was ordered by Ecuadorean courts to pay a $9.5 billion award. Chevron bought Texaco in 2001.
But with the tiny Ecuadorean economy in recession the risks of snubbing badly needed international investors appear to have been too great for Correa’s leftist government to ignore.