Perenco registers Award debt owed by Ecuador in Singapore and UK
Further step taken to enforce payment rights against Ecuador, which remains in full default on its US$412m debt to Perenco
LONDON, Aug. 26, 2022 /PRNewswire/ -- Perenco confirms that it has registered the Award owed to Perenco by the Republic of Ecuador in The General Division of The High Court of The Republic of Singapore. The Award is also registered in The High Court of Justice in the UK. This action, which is in keeping with Perenco's stated strategy of enforcing its payment rights in multiple jurisdictions, would allow for Ecuadorean accounts in these jurisdictions to be frozen and trading payments and receivables to be seized, in order to satisfy the outstanding Award debt.
Today's announcement follows the statement on 1 August 2022 in which Perenco confirmed the freezing of all Luxembourg bank accounts used by the Republic of Ecuador to make coupon payments in respect of its 2030, 2035 and 2040 sovereign bonds.
Perenco's further action arises from the continuing non-payment by Ecuador of a US$412m debt, the revised amount awarded to Perenco in May 2021 by the International Centre for Settlement of Investment Disputes ("ICSID") Committee.
Perenco notes Ecuador's recent comments that it will settle the Award. Despite this, Ecuador has still made no proposal in this regard and therefore Perenco has again been left with no choice but to take further steps to continue to enforce its payments rights against Ecuador in other jurisdictions.
Perenco reiterates that it remains hopeful that Ecuador's Government will honour its international obligations, demonstrate its commitment to the rule of law, and uphold its promises to foreign investors, by promptly satisfying the Award without further delay.
Background
Perenco's long-running dispute against the Republic of Ecuador arises from Ecuador's imposition of Law 42, which unilaterally and illegally increased the State's take in Perenco's participation contracts for Blocks 7 and 21. In September 2019, Perenco had secured a final Award with an ICSID Tribunal awarding it damages of US$448 million on its principal claims plus post-award interest and almost 80% of its costs.
On 28 May 2021, an ICSID Committee comprehensively rejected Ecuador's attempts to annul the final Award in its entirety. The ICSID Committee instead reduced the total amount of the Award due to Perenco to US$412 million on its principal claims plus post-award interest and costs and upheld the remainder of the Award.
About Perenco
Perenco is an independent hydrocarbons producer. Founded in 1992, the Group is involved in the entire life cycle of projects, from exploration to decommissioning. Its strength lies in the ingenuity and versatility of its 6,800 employees, who allow the Group to develop a fully sustainable, optimised and integrated business. By enhancing and developing local resources, Perenco supports the economic growth and human development in each of the 15 partner countries where it operates.
Media Enquiries: Celicourt Communications, +44 (0)20 8434 2643 / [email protected]
SOURCE Perenco
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