Chevron Corporation has been ordered by an Ecuadorian judge on Monday to pay a fine of US$9.5 billion for damages caused by oil drilling contamination in vast parts of the Ecuador’s share of the Amazon rainforest.
Although far below the expected $27.3 billion recommended by a court-appointed expert, the final amount is a victory for activists and the indigenous tribes affected by the US oil giant’s activities. The $9.5 billion which also includes a legally mandated 10% reparations fee is said to be the highest damage awarded in an environmental lawsuit.
In its response, Chevron, which announced $19 bilion earnings for 2010, called the judgment “illegitimate” saying that it would appeal the Ecuadorian court’s decision.
“The Ecuadorian court’s judgment is illegitimate and unenforceable. It is the product of fraud and is contrary to the legitimate scientific evidence. Chevron will appeal this decision in Ecuador and intends to see that justice prevails.
“United States and international tribunals already have taken steps to bar enforcement of the Ecuadorian ruling. Chevron does not believe that today’s judgment is enforceable in any court that observes the rule of law.
“Chevron intends to see that the perpetrators of this fraud are held accountable for their misconduct.”
The high-stakes court ruling, if successful, marks an end to the suit first brought up against Texaco in a New York Federal court in 1993, which the company dismissed three years later arguing that the case should be heard in Ecuador. The case gained traction once again two years after Chevron’s 2001 takeover of Texaco.
Ecuador belongs to the Organization of Oil Producing Countries (OPEC) and produces just shy of half a million barrels of crude oil a day with proven reserves of 6.51 billion barrels.
