Perenco v. Ecuador Deters 2nd-Guessing Arbitration Tribunal

7 May 2015
On April 10, 2015, the Perenco Ecuador Limited v. Republic of Ecuador tribunal rejected Ecuador’s attempt to reopen its decision on remaining issues of jurisdiction and on liability, dated September 2014. In that September 2014 decision, the tribunal had found Ecuador in breach of its treaty and contract obligations for imposing a new participation of 99% of oil revenues above a low reference price. In its most recent ruling, the tribunal held that neither the International Centre for Settlement of Investment Disputes (ICSID) framework nor a tribunal’s inherent power permitted the tribunal to entertain what was tantamount to an interlocutory appeal or annulment review of its own decision.