Chevron told to pay $8bn by Ecuador

Chevron, America’s second biggest oil company, has been ordered to pay an $8.2bn (£5.1bn) fine it has described as “fraudulent”, after losing a 20-year lawsuit in Ecuador. Chevron is charged with causing environmental damage in the Amazon River basin more than 20 years ago through Texaco – a company Chevron acquired in 2001. “The Ecuadorian court’s judgment is illegitimate and unenforceable,” Chevron said in a statement. “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.” The judgment ranks second only to BP’s $20bn Gulf Coast Claims Facility – the settlement fund set up to atone for the environmental damage caused by the Gulf of Mexico oil spill last year. However, Chevron pledged to appeal the court order, arguing that earlier rulings by US and international courts will bar enforcement of yesterday’s decision. The lawsuit on behalf of Ecuadorian Amazon communities, was originally filed in New York in 1993. It sought $27bn in damages from illness, deaths and economic loss. More…

News selected by Covalence | Country: Ecuador | Company: Chevron | Source: The Telegraph