Friday, February 1st 2013 - 18:47 UTC

Argentine court confirms setback for Chevron in 20-year old dispute with Ecuador

An Argentine appeals court has upheld an embargo on the assets of Chevron Corp.'s local subsidiary, a legal setback for the company, which had said the embargo compromised its operations in the country. A lower court judge issued the embargo last year as part of a decades-old legal dispute involving claims that Chevron is responsible for environmental contamination in Ecuador.

We are very pleased with the resolution that is well founded”, said Enrique Bruchou, lead attorney for the plaintiffs

“We are very pleased with the resolution of the Court of Appeals, which is well founded,” said Enrique Bruchou, lead attorney for the plaintiffs in Argentina.

An Ecuadorian court had previously awarded 19 billion dollars to indigenous people who said they had been harmed by pollution. Chevron has denied the allegations and said the ruling is based on fraudulent evidence, which the plaintiffs deny.

“Chevron respectfully disagrees with the court's decision,” the company said Wednesday in a statement from California. “Chevron Argentina intends to pursue all available legal remedies to reverse the interim measure.”

The Argentine embargo applies to 100% of Chevron's capital in Argentina, 100% of dividends, all of Chevron's stake in pipeline operator Oleoductos del Valle SA, 40% of Chevron's oil sales to Argentine refineries and 40% of the money Chevron has or may eventually have in Argentine banks.

The court order says the embargo will remain in place until Chevron has paid off the Ecuador award in full. Last year, Mr. Bruchou estimated that Chevron's assets in Argentina amounted to about 2 billion dollars. The proceeds from Chevron Argentina's oil production, valued at 600 million in 2010, are also subject to the embargo until the legal claim is settled, Mr. Bruchou said at the time.

Chevron doesn't have significant assets in Ecuador, so the plaintiffs have been trying to seize the company's assets in other countries to enforce settlement on the judgment.

The Argentine court's embargo ruling cited a treaty between Argentina and Ecuador that allows judges in one country to enforce court orders from the other.

In a full-page ad placed in Argentina's leading newspapers last November, Chevron Argentina said the claims against it have no legal foundation and that the embargo has broader consequences for the entire country.

“The judicial embargo compromises Chevron's capacity to operate and reinvest given that the order affects more than 90% of its income through crude sales,” the company said.

The lawsuit in Argentina is the latest development in an almost 20-year legal dispute over claims that Texaco Inc., which Chevron bought in 2001, contaminated parts of Ecuador's Amazon region when it was operating in the country.
 

20 comments Feed

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1 briton (#) Feb 01st, 2013 - 06:50 pm Report abuse
Argentine appeals court has upheld an embargo
Controlled by the state,

Now why are we not amused lol.
.
2 Shed-time (#) Feb 01st, 2013 - 10:54 pm Report abuse
Kind of reminds me of BP.
3 DanyBerger (#) Feb 02nd, 2013 - 05:30 am Report abuse
The long arm of law...
I like it.

Come on yanks pay your debts before Argies judges start to size planes, buildings and why not a nuclear submarine. That would be cool...
4 Shed-time (#) Feb 02nd, 2013 - 09:24 am Report abuse
I've just reflected on this, come back and it still looks like Karma for BP.
5 yankeeboy (#) Feb 02nd, 2013 - 03:07 pm Report abuse
And they wonder why they can't find anyone to explore Vaca Muerte.

Argentina is run by a bunch of clowns.
6 Shed-time (#) Feb 02nd, 2013 - 06:35 pm Report abuse
@5 To be fair, I could say the same thing about the Gulf of Mexico. Remember the USA was demanding $20Bn+ from BP for un-'indigenous people who said they had been harmed by pollution'.

... and this was with Haliburton's dodgy concrete. Why aren't you americans allowed to say anything bad about Halliburton or say they did something wrong ever? Is it some kind of law?

Has it got anything to do with why you put South American despotic states and Israel ($6bil a year) before ideologically-aligned free democratic places in the South Atlantic, that you folks refer to as Malvinas?

It's puzzling, it is.
7 ChrisR (#) Feb 02nd, 2013 - 06:38 pm Report abuse
5 yankeeboy

Damn, you beat me to it!

Chevron should drop YPF like a hot brick over this. I seem to remember that the 'deals' were only memos of understanding and YPF were desperate to move on to a contracual stage. Some hope now I would imagine.
8 Shed-time (#) Feb 02nd, 2013 - 06:48 pm Report abuse
@7 I don't think they're capable of dropping YPF, they're being successfully manipulated into being the dancing monkey of the Argentine government, whilst their capital is held hostage.

The only other possibility is that Ecuador successfully gets 'the assets' which functionally scuttles the argentine 'great leap forward'. Unlikely to happen.
9 yankeeboy (#) Feb 02nd, 2013 - 06:49 pm Report abuse
Like every company in Argentina, I am sure Chevron will just wait until the next gov't comes in and make a deal with them.
CFK can't be around much longer one way or the other.
10 DanyBerger (#) Feb 03rd, 2013 - 09:20 am Report abuse
Justice in argentina is independent of political power so nothing is going to change.

Pay and stop crying like babies...
11 ChrisR (#) Feb 03rd, 2013 - 04:35 pm Report abuse
Dunny-Burger

“Justice in argentina is independent of political power so nothing is going to change.”

Ha, ha, ha to the power googol!

Which comic book are you reading from?

You really are a laugh-a-minute!
12 yankeeboy (#) Feb 03rd, 2013 - 05:07 pm Report abuse
Delusional Dany:
rgentina is a deeply corrupt country. Transparency International, a non-governmental watchdog organization, ranks the Land of the Gaucho 105th in its Corruption Index, just behind other models of good governance such as Algeria, Mexico, and Greece. But, just as a famed American folk singer once observed that one doesn’t need a meteorologist to appreciate air currents, one hardly needs a study to know that Argentines have scant regard for the law.

Last August, an investigation revealed that Supreme Court Justice Eugenio Zaffaroni owned six apartments that were being used as brothels. Although a media spectacle predictably ensued, no one pressured him to recuse himself from the court, even temporarily, to clear his name. Fellow justice Carmen Agibay called it a “private matter,” said that it “doesn’t affect the Supreme Court in the least,” and stated that Zaffaroni would “provide an explanation eventually.”
www.transparency.org/country#ARG
Judiciary
Lack of transparency and clear rules in the selection of judges in Argentina suggests that parts of the judiciary may suffer from political influence. This absence of autonomy is particularly seen in the judiciary’s relationship with the executive branch.

In a high profile scandal, Vice President Amado Boudou was accused of illegal enrichment, money laundering and influence peddling to allegedly prevent the bankruptcy of a mint and printing company. The pursuit of the allegations brought about the removal of the presiding judge and resignation of the prosecutor. This followed Boudou’s alleged business partner’s accusations that the presiding judge lost his objectivity. Criminal charges were brought against the prosecutor by Boudou himself.

Integrity in the judicial system is also compromised due to inefficiencies and excessive delays in the sector. Constant changes and opacity in judge appointments, as well as inadequate administrative support, continue to hamper integrity in the judiciary.
13 DanyBerger (#) Feb 04th, 2013 - 09:19 am Report abuse
Who cares about what says Transparency International?

USA is the most corrupted country in the world where even senator seats were sold by politicians. Like had done Rod Blagojevich.

Corrupted who?

Stop with you crap about how good is your Crappy US and how bad are the rest. US is a dysfunctional country and close to collapse.

Ready to look for work in Tijuana? not yet?
14 Rob the argentine (#) Feb 04th, 2013 - 11:51 am Report abuse
#13 Dany the Burger, Corrupted who? The argentine Justice and the argentine government.
Read any argentinean newspaper and tell me how is possible all the trials to Boudou, Echegaray, Kretina, a others members of this government where dismissed?
What about Zaffaroni, Canicoba Corral, Oyarbide, and lot of others?
15 Captain Poppy (#) Feb 04th, 2013 - 05:40 pm Report abuse
# dumburger are you really that stupid where yopu confuse privately owned enterprises with a government? Oh yeah you argenturds don't know the difference. Actually....go ahead, go and try to seize a American ship......a REAL warship ........go lay a claim and sieze the John C. Stennis, that would make for interesting news reading.
And moron blogo is in jail.....immediately after it happened. The independence in argie justice is limited to the amount of greenbacks one gives the judges. All you rg la campora androids need to come out from under your rocks and travel the world that you know nothing off.
16 DanyBerger (#) Feb 05th, 2013 - 09:10 am Report abuse
@Captain Poppy

If I don't bad remember Argies have already sized a military plane. Do you remember?
So be quite and enjoy it, CHevron still under embargo.

Sad but true...

BTW any idea to get out of the mess in which you are in USA?

Or will keep borrowing money from China?
17 Captain Poppy (#) Feb 05th, 2013 - 12:50 pm Report abuse
Seized? Go ahead.....I really want to see Argentina seize an American GOVERNMENT asset like the Stennis. You love Argentina so much you had to leave....was it because of the roaches you and your wife breed....to protect them?
18 DanyBerger (#) Feb 05th, 2013 - 05:17 pm Report abuse
@Captain Poppy
Are you stupid or what the military cargo plane was not a US govt asset?
online.wsj.com/article/SB10001424052748703584804576144450144733380.html

How long was sized? 4 months

Oh! pure empty threats from losers how old are you 10 or 70 in regression?
Ha ha
19 Captain Poppy (#) Feb 05th, 2013 - 06:22 pm Report abuse
From Feb 15 2011 ? Days moron. And Rgentina claimed they had weapons and needed to investigate the the USA complied. Notice that live turned to shit after that in Rgentina? Oh....no, you didn't notice because you don't l've there. You are a bigger nit than your kids.
20 DanyBerger (#) Feb 06th, 2013 - 08:43 am Report abuse
@Crap tain Poopy

“Notice that live turned to shit after that in Rgentina? Oh....no, you didn't notice because you don't l've there. You are a bigger nit than your kids.”

Really nope, on the contrary but what I have noted since that is that US has became the laughing stock in whole America and that the situation is worsening.
I mean the continent because you are so dumbass that you need clarification that America is a continent.

That would be very embarrassing that Argentina sizes your military stuff. What do you think?

And not even enough with that now your companies like Chevron on request from Ecuador.

Ha ha

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