Arbitral Digest

Matter

Burlington Resources, Inc. v. Republic of Ecuador (ICSID Case No. ARB/08/5)

Case no.
ARB/08/5
Applicable rules
ICSID Arbitration Rules
  1. 29 June 2009Arbitration

    29 June 2009Arbitration

    Procedural Order No. 1 on Burlington Oriente's Request for Provisional Measures

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal ordered the parties to establish an escrow account, directed Burlington Oriente to deposit past and future Law 42 and Decree 662 payments, directed the Respondents to discontinue and not initiate coactiva actions, and ordered the parties to avoid aggravating the dispute.

    Supporting details

    5 authorities · 7 participants
    Burlington Resources Oriente Limited
    Republic of Ecuador
    Petroecuador
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Brigitte Stern
    Other

    Authorities cited

    5
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States, Washington, DC, 1965
      convention
    • Treaty between the United States and Ecuador concerning the Encouragement and Reciprocal Protection of Investments, 11 May 1997
      treaty
    • Ecuadorian Civil Code
      statute
    • Ecuadorian Law No. 2006-42
      statute
    • Ecuadorian Decree No. 662
      statute

    11 months and 4 days later · 338 days

  2. 2 June 2010Arbitration

    2 June 2010Arbitration

    Decision on Jurisdiction

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal addressed Ecuador's jurisdictional objections and held that some claims were within its jurisdiction while other claims were dismissed or found inadmissible for failure to satisfy the Treaty requirements.

    Supporting details

    2 authorities · 5 participants
    Burlington Resources Inc.
    Republic of Ecuador
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Brigitte Stern

    Authorities cited

    2
    • Treaty between the United States and Ecuador concerning the Encouragement and Reciprocal Protection of Investments, 11 May 1997
      treaty
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States, Washington, DC, 1965
      convention

    2 years, 6 months and 12 days later · 926 days

  3. 14 December 2012Arbitration

    14 December 2012Arbitration

    Decision on Liability

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal denied Ecuador's request to strike part of Burlington's submission, held that it lacked jurisdiction over Burlington's umbrella-clause claims, upheld jurisdiction and admissibility concerning the caducidad decrees for Blocks 7 and 21, and held that Ecuador unlawfully expropriated Burlington's investment in those blocks as of 30 August 2009. The Tribunal dismissed contrary relief and reserved costs.

    Supporting details

    4 authorities · 7 participants
    Burlington Resources Inc.
    Expert
    James Crawford (For: Burlington Resources Inc.)
    Republic of Ecuador
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Brigitte Stern
    Other

    Authorities cited

    4
    • Treaty between the United States and Ecuador concerning the Encouragement and Reciprocal Protection of Investments, 11 May 1997
      treaty
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States, Washington, DC, 1965
      convention
    • Ecuadorian Hydrocarbons Law
      statute
    • Ecuadorian Law No. 2006-42
      statute
  4. 14 December 2012Arbitration

    14 December 2012Arbitration

    Dissenting Opinion of Arbitrator Orrego Vicuna

    International Centre for Settlement of Investment Disputes

    Decision summary
    Arbitrator Orrego Vicuna agreed that Ecuador's taking of the Blocks constituted expropriation but disagreed with the majority's narrower treatment of additional contractual and Treaty rights.

    Supporting details

    1 authority · 1 participant
    International Centre for Settlement of Investment Disputes

    Authorities cited

    1
    • Treaty between the United States and Ecuador concerning the Encouragement and Reciprocal Protection of Investments, 11 May 1997
      treaty

    11 months and 29 days later · 364 days

  5. 13 December 2013Arbitration

    13 December 2013Arbitration

    Decision on the Proposal for Disqualification of Professor Francisco Orrego Vicuna

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Chairman upheld the Republic of Ecuador's proposal to disqualify Professor Francisco Orrego Vicuna, finding an appearance of lack of impartiality in his explanations concerning counsel for Ecuador; other grounds were dismissed as untimely or unsupported.

    Supporting details

    1 authority · 4 participants
    Republic of Ecuador
    Burlington Resources Inc.
    International Centre for Settlement of Investment Disputes
    Other

    Authorities cited

    1
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States, Washington, DC, 1965
      convention

    3 years, 1 month and 25 days later · 1152 days

  6. 7 February 2017Arbitration

    7 February 2017Arbitration

    Decision on Counterclaims

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal held Burlington liable to Ecuador for environmental restoration costs in Blocks 7 and 21 and for infrastructure remediation costs, ordered payment of USD 39,199,373 and USD 2,577,119.77 respectively with simple interest at LIBOR for three-month borrowings plus two percent, reserved costs, and dismissed the other requests for relief on the counterclaims.

    Supporting details

    3 authorities · 11 participants
    Burlington Resources Inc.
    Republic of Ecuador
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Stephen Drymer
    Arbitrator
    Brigitte Stern
    Tribunal secretary
    Magnus Jesko Langer
    Other
    Witness
    John Crick

    Authorities cited

    3
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States, Washington, DC, 1965
      convention
    • Ecuadorian Civil Code
      statute
    • Ecuadorian Commercial Code
      statute
  7. 7 February 2017Arbitration

    7 February 2017Arbitration

    Decision on Reconsideration and Award

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal denied Ecuador's motion for reconsideration and its jurisdictional and admissibility objections. It ordered Ecuador to pay Burlington USD 379,802,267 with compounded annual interest at LIBOR for three-month borrowings plus two percent from 1 September 2016 until payment. It ordered Burlington to pay Petroecuador USD 48,589.72 with the same interest terms, allocated arbitration costs 65% to Ecuador and 35% to Burlington, ordered each party to bear its own legal and expert costs, and dismissed all other claims.

    Supporting details

    1 authority · 10 participants
    Burlington Resources Inc.
    Republic of Ecuador
    Petroecuador
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Brigitte Stern
    Arbitrator
    Stephen Drymer
    Tribunal secretary
    Magnus Jesko Langer
    Other

    Authorities cited

    1
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States, Washington, DC, 1965
      convention

    6 months and 24 days later · 205 days

  8. 31 August 2017Arbitration

    31 August 2017Arbitration

    Decision on Stay of Enforcement of the Award

    International Centre for Settlement of Investment Disputes

    Decision summary
    The ad hoc Committee held that Ecuador had not proved circumstances requiring continuation of the stay, terminated the provisional stay of enforcement, reserved its decision on costs, and dismissed all other requests.

    Supporting details

    1 authority · 6 participants
    Burlington Resources Inc.
    Republic of Ecuador
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Vera Van Houtte
    Tribunal secretary
    Alicia Martin Blanco

    Authorities cited

    1
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States, Washington, DC, 1965
      convention

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Burlington Resources, Inc. v. Republic of Ecuador (ICSID Case No. ARB/08/5) · Matter