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Ecuador loses Oxy tax claim



By Upstream staff 

A British court has turned down Ecuador's request to annul a previous ruling against the Andean nation over a $75 million tax dispute with Occidental Petroleum, a government source said.

The court last year rejected an appeal by Ecuador over a 2004 ruling by an international tribunal that said Occidental was wrongly excluded from a tax revision process and had ordered the country to pay $75 million to the oil company.

"The court... decided that there were no arguments to annul its previous ruling. We are analyzing our options to appeal," the source, who asked not to be named, told Reuters.

Occidental has said the tax dispute led to the government's decision in 2006 to terminate its contract and seize the US company's assets.

Ecuador accused the company of illegally transferring part of the oil block to another company.

An Occidental spokesman was not immediately available for comments.


Thursday, 05 July, 2007, 01:21 GMT  | last updated: Thursday, 05 July, 2007, 01:21 GMT

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