City Oriente against the Ecuadorian State

Our Firm represented City Oriente in the arbitration case filed against the Ecuadorian State, based on the Bilateral Investment Treatment subscribed with the United States of America, for the breach of contract of exploration and exploitation of hydrocarbons, by virtue of the enactment of the Reforming Law to the Hydrocarbons Law. Said reform established that the State will receive for the exploration and exploitation of hydrocarbon deposits, the participation from 50% to 99%, to 1% of the surplus of oil sale prices.

The Arbitration Tribunal granted preventive measures on behalf of the plaintiff, by virtue of the arbitration object. This decision is an important precedent for international arbitration.

Later on City Oriente reached an agreement with the Ecuadorian State and withdrew the claim.