Argentina Freezes Chevron Assets

[ElQueso]

http://www.argentina...mental-dispute/

I'm trying to make some sense of this one.

The assets were frozen due to an environmental lawsuit in Ecuador that has a nearly 20-year history. I don't know anything about the background of the lawsuit itself aside from what was in the article. It started with Texaco, before Chevron bought them out. The claim is that Texaco contaminated a village and its environs in Ecuador over a 30 year period. Chevron has refused to pay, citing corruption and bribery in Ecuador.

Of course, personally, it doesn't surprise me that some 50 years ago (when the alleged contamination started) Texaco polluted the crap out of the place. It also doesn't surprise me that corruption and bribery were involved in the lawsuit in Ecuador. I don't think the latter excuses the former by any means, but possibly the amount to be paid could have been affected? Of course, it also wouldn't surprise me that bribery and corruption were found on BOTH sides of the trial.

What puzzles me is why Argentina is getting involved.

Does it have something to do with the ship impounded in Ghana, a sort of tit-for-tat? Is it an anti-colonial solidarity thing? Is Argentina trying to seize additional petroleum industry assets to go along with having stolen Repsol's portion of YPF?

How does Argentina have any jurisdiction over this? the comnpany that operates here is not the same company that operates in Ecuador, for one thing. They are both subsidiaries. Whether that is right or wrong morally, the law seems pretty clear on this, I would think (though I'm no lawyer of any kind and could be dead wrong).

In September, the newy-stolen YPF signed a letter of intent with Chevron to help them produce oil and gas fields. They were also talking to China. Did China come in and make some back-room deal with Cristina and this is the result? I for sure can't seeing Chevron wanting to continue work here when they just had their assets frozen by a court that has no jurisdiction. They must have been a bit jumpy to begin with when the YPF thing happened and they started talking to Argentina about developing the fields.

Any thoughts?

 

[Iznogud]

Ermahgerd!

 

[scotttswan]

Chevron fought to have the lawsuit heard in Ecuador (the legal strategy was begun by Texaco, but continued by Chevron after it purchased that company). As part of that process, the corporation produced 10 experts to testify to the integrity of the Ecuadorian legal system and agreed to be bound by the rulings of its courts.

They then lost and tried to take it to the US Supreme court where they lost again.

Why Argentina is getting involved? Human Rights!11!111

 

[Crema Americana]

Argentina is getting involved because supposedly Ecuador asked them to... and I think it's pretty clear Kirchner has no love for foreign internationals. Any excuse to seize assets is a good one.

I wonder now if perhaps this wasn't planned with Argentina or even China being an instigator... Ecuador isn't going to say no if they get a good part of the deal.

 

[Joe]

All the expertise for shale oil, fracking, etc. is held my US corporations. By making the investment climate so hostile, CFK will display bravado, feel better for sticking it to the man and doom thousands of Argentinas to poverty that they could have escaped. I hope she enjoys her little tea party.

 

[ghost]

Do not do business in or with Argentina. Chevron should know better. Bipolar and hyper-corrupt.

 

[ElQueso]

Ermahgerd!

Crap dude, I missed this the first pass and was reviewing this thread today and saw your comment. At first I said WTF? Upon a little research I concluded:

Dey er ernderd sterped! Ermahgerd!

 

[dennisr]

To play devil's advocate, Argentina is obligated by treaty, (Inter-American Convention on the Execution of Preventive Measures) to freeze assets of Chevron for Ecuador. What I want to see is Argentina transfer the assets to Ecuador.