Oil Company standing It has been informed that it has registered the award owed to Perenco from Ecuador in the Public Chamber of the Supreme Court of the Republic of Singapore.
Standard & Poor’s maintains Ecuador’s credit rating at B-/B with a stable outlook
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The debt has also been registered with the High Court of Justice in the United Kingdom, the company confirmed in a press release issued this August 26, 2022.
multinational He notes that this measure, in line with Perenco’s stated strategy to assert its payment rights in multiple jurisdictions, will allow the accounts of Ecuadoreans in these jurisdictions to be frozen and commercial payments and debit accounts forfeited, in order to satisfy debts owed from the award.
Perenco continues the strategy announced on August 1, 2022 in which the oil company confirmed the freezing of all bank accounts of Luxembourg that Ecuador uses to make coupon payments in connection with its 2030, 2035 and 2040 sovereign bonds.
As a result of the arbitration award, Ecuador shall pay 412 million dollarsalthough the Ecuadorean government put it at $375 million, a lower figure for environmental damage.
According to the Ministry of Economy and Finance (MEF), Ecuador is still awaiting a ruling from a court New York To settle the amounts the oil company owes in the country, specifically with the Internal Revenue Service (SRI). Estimated at $50 million including interest.
Pablo Arosimena: Ecuador “doesn’t have frozen accounts in Luxembourg because it doesn’t have investments there”
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according to finance, There is an intention From Ecuador to pay and the amount owed is fully included in the 2022 budget.
However, Perenco points out that Ecuador is still No suggestion has been made In this regard, therefore, the oil company once again “had no choice but to take additional measures to continue asserting its rights to pay against Ecuador in other jurisdictions.”
Risk rating agencies, such as Standard & Poor’s and Fitch, have warned Ecuador in recent weeks of a possible credit rating downgrade, should debt payments be affected by Perenco’s actions.
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Ecuador lost the oil company’s arbitration arbitration in 2008, after the government increased from 50% to 99% the portion that the Ecuadorean state retained from the extraordinary profits due to higher oil prices than those specified in the contracts.
The action by former Socialist President Rafael Correa (2007-2017) cornered foreign oil companies by cutting their profits and changing the country’s business model, which benefits the country.
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