Updated December 23rd, 2023 at 09:19 IST
Ecuador wins arbitration to avoid $198 mln payment to Worley
Dispute originated when Worley International Services initiated legal proceedings against Ecuador, alleging non-payment about contracts with Petroecuador.
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Ecuador's procurator announced on Friday that the country has won an international arbitration case, thereby avoiding a financial obligation of $198 million to engineering entity Worley International Services.
The dispute originated in 2019 when Worley International Services initiated legal proceedings against Ecuador, alleging non-payment in relation to contracts with the state-controlled Petroecuador. These contracts pertained to the refurbishment of the Esmeraldas refinery and additional gas infrastructure projects.
In a statement issued by the procurator, it was confirmed that a panel of three international arbitrators ruled in favour of Ecuador, thereby dismissing Worley's claims. "The tribunal upheld Ecuador's arguments while dismissing WorleyParsons' contentions," the statement noted, referencing a previous designation for the Australia-based corporation.
Furthermore, the arbitration ruling mandates Worley to cover Ecuador's expenses and costs associated with the arbitration procedure.
As Ecuador navigates significant fiscal challenges, including projected deficits amounting to approximately $5.7 billion for the year, this arbitration outcome holds notable financial implications for both parties involved. Worley International Services has yet to offer a response to the recent developments.
(With Reuters inputs)
Published December 23rd, 2023 at 09:19 IST