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Ecuador court orders Chevron to pay USD 8 bn: Lawyer

A court in Ecuador's Amazon jungle has ordered Chevron to pay USD 8 billion in a closely-watched environmental lawsuit, but the US oil company rejected the ruling as illegitimate.

February 15, 2011 / 09:47 IST

A court in Ecuador's Amazon jungle has ordered Chevron to pay USD 8 billion in a closely-watched environmental lawsuit, but the US oil company rejected the ruling as illegitimate.

The highly controversial case has triggered related legal action in US courts and international arbitration and is being monitored by the oil industry for precedents that could lead to other large claims.

In a statement on Monday, Chevron did not give any figure from the ruling by the court in Lago Agrio.

But Pablo Fajardo, a lawyer for the plaintiffs, said the court had ordered Chevron to pay more than $8 billion damages.

The lawsuit had originally demanded USD 27 billion.

The US oil company said it would appeal the decision. "The Ecuadorean court's judgement is illegitimate and unenforceable," Chevron said in a statement.

Residents of Ecuador's Amazon region have said that faulty drilling practices by Texaco, which was bought by Chevron in 2001, caused damage to wide areas of jungle and harmed indigenous people in the 1970s and 1980s.

first published: Feb 15, 2011 09:29 am

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