In Brief: Proceedings are suspended in dispute between French oil company and Ecuador

By Elizabeth Whitsitt

March 11, 2010

Thomas Bingham, President of the ICSID tribunal in Perenco Ecuador Limited v. Ecuador has resigned.

At the center of the dispute between Perenco and Ecuador is a windfall tax enacted in 2006 (Law 42) by the South American Republic.  According to Ecuador, Perenco owes some US$327 million under Law 42.  Perenco, on the other hand, contends that the law is in violation of its contract with Ecuador and the France-Ecuador BIT.

Mr. Bingham’s resignation came on February 17, 2010, only month after UK lawyer and arbitrator Neil Kaplan was chosen by Perenco to replace Judge Charles Brower.  Following the resignation of Thomas Bingham, proceedings in the case are suspended until the vacancy on the ICSID panel has been filled.

Previous ITN Reporting:

“Perenco-nominated arbitrator disqualified for interview comments in ICSID dispute with Ecuador,” By Fernando Cabrera Diaz, Investment Treaty News, 14 February 2010, available here:

http://www.investmenttreatynews.org/cms/news/archive/2010/02/10/perenco-nominated-arbitrator-disqualified-for-interview-comments-in-icsid-dispute-with-ecuador.aspx

“Ecuador defies provisional measures in dispute with French oil company,” By Damon Vis-Dunbar, Investment Treaty News, 8 June 2009, is available here:

http://www.investmenttreatynews.org/cms/news/archive/2009/06/05/ecuador-defies-provisional-measures-in-dispute-with-french-oil-company.aspx