Chevron Loses in Ecuador Amazon Case

Chevron Loses in Ecuador Amazon Case

The company’s assets had been frozen based on $19 billion environmental fine. The fine is equivalent to the value of Chevron's entire holdings in Argentina, and could cause company to shut down its entire operation.

Jan. 31, 2013 Agence France-Presse

BUENOS AIRES -- An Argentine appeals court has upheld a move by Buenos Aires to freeze $19 billion in Chevron (IW 1000/7) assets at the request of Ecuador, which blames the oil giant for environmental damage in the Amazon.

Court documents showed that the ruling issued on Tuesday rejected Chevron's position that Argentina lacked jurisdiction to take a side in the matter. The appeals court petition was filed by two Chevron subsidiaries operating in Argentina.

An Argentine court in November froze Chevron Corporation's assets at the request of Quito, where Chevron was ordered to pay $19 billion for environmental damage, a lawyer in the case said.

The $19 billion judgment is equivalent to the value of Chevron's entire holdings in Argentina, and a company official said here recently that an adverse ruling could cause it to shut down its entire operation here.

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