Amazonian court delivers fine for environmental damage but Chevron believes it is unlikely ever to pay
Oil giant Chevron has been fined more than $8bn by a court in Ecuador’s Amazon for environmental damage.
The US company said it will fight on in a suit that is seen as a global test case, according to MSNBC.
The case, which has spawned related legal action in the US courts as well as accusations of dirty tricks and bribery, dates from drilling in the Andean nation during the 1970s and 1980s.
A judge ordered Chevron to pay more than $8bn to repair environmental damage but the oil major believes it is unlikely ever to pay.
Investors shrugged off the news on Monday as Chevron stocks closed 1.3% higher. Chevron said the ruling was “unenforceable” and “illegitimate”. The California-based company had revenue of $198 billion and net profit of $19 billion in 2010.
“The case highlights the risks of doing business in Ecuador, where leftist President Rafael Correa often feuds with the private sector and has publicly sided with the plaintiffs,” according to MSNBC.
