ConocoPhillips (NYSE: COP) said it has reached an agreement on the terms of payment to Burlington, a wholly-owned subsidiary of ConocoPhillips, by the Republic of Ecuador under a February 2017 International Center for Settlement of Investment Disputes (ICSID) arbitration award.
In December 2012, the ICSID Tribunal ruled that Ecuador unlawfully expropriated the company’s oil investments in blocks 7 and 21, violating the U.S.–Ecuador bilateral investment treaty, ConocoPhillips said in a news release. In February 2016, the tribunal issued an award on damages, and in August 2017, the ICSID Annulment Committee lifted the stay of enforcement of the award allowing ConocoPhillips to start enforcing the award.
Under the terms of the agreement, ConocoPhillips said on Dec. 4 that it will recover a total of $337 million from Ecuador. On Dec. 1, 2017, Ecuador paid $75 million, with the balance of $262 million to be paid by April 2018.
The settlement amount includes an offset for the decision awarding Ecuador $42 million on its counterclaims, of which Burlington is entitled an additional $24 million through a third-party contribution, according to the release.
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