Stay of enforcement of billion dollar award to continue unconditionally (Occidental Petroleum & Anor v Ecuador—ICSID Case No. ARB/06/11)

Table of contents

• Decision details
• Background to the decision
• The decision
• To stay or not to stay?
• Was the committee empowered to impose conditions?
• Should Ecuador be made to post security?

Article summary

On 30 September 2013, the ad hoc Committee in ICSID Case No. ARB/06/11 issued its decision following Occidental’s request that the provisional stay of enforcement of the Committee’s earlier award be lifted or, if permitted to continue, made subject to conditions (principally the posting of security). The Committee unanimously declined Occidental’s request, deciding that the stay of enforcement would continue unconditionally, for now. The decision will have come as a significant disappointment to Occidental as the Committee’s award, rendered on 5 October 2012, awarded Occidental damages in excess of US$1.7 billion. Nevertheless, the Committee’s decision included a warning to Ecuador that if its future conduct materially increases the risk of noncompliance with the award, Occidental may request that the continuation of the stay of enforcement be terminated.