Bolivia Will Seek to Annul ICC Award Granting Shell $10 Million
Margarita field where Shell carried out exploration work in Tarija, Bolivia. Photo: X/ @LaRazon_Bolivia
August 15, 2024 Hour: 11:29 am
The lawsuit was initially handled by Jeanine Añez, who presided over a U.S.-backed regime between 2019 and 2020.
On Wednesday, Attorney General Cesar Siles announced that his country will seek to annul the arbitration award from the International Court of Arbitration of the International Chamber of Commerce (ICC), which obliges it to pay US$10 million to Shell Bolivia Corporation.
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The international arbitration tribunal recently notified the Bolivian state of the resolution, which pertains to a process initiated by the Dutch company Shell in February 2020 and was initially handled by Jeanine Añez, who presided over a de facto U.S.-backed regime between 2019 and 2020.
The multinational company initially demanded US$26 million “for production debts and production incentives” related to previous administrations. Siles indicated that Bolivia had proposed “clarifications, additions, and requests for interpretation,” actions that could potentially “reduce” the penalty amount.
“We are awaiting the tribunal’s issuance of another ruling regarding the interpretation, clarification, and amendment requested,” the Attorney General said, mentioning that the annulment of the award could be presented before a judicial body in Bolivia, as stipulated by the contract.
“We are already preparing the document, considering that a resolution of amendment or interpretation will not change the substance of the matter. We are preparing the document requesting the annulment of the award,” Siles emphasized.
On Tuesday, the ICC ruling was announced by Jose Manuel Ormachea, a legislator from the opposition party Citizen Community, who argued that the arbitration award further exacerbates the country’s economic situation due to the lack of foreign currency and the shortage of fuel.
In response, the Attorney General’s Office issued a statement emphasizing that the award grants a “lower amount than requested” and that “all possible resources” will be exhausted to overturn the initial result.
teleSUR/ JF Source: EFE
