ECOPETROL WON THE LEGAL BATTLE AGAINST PACIFIC RUBIALES
The Colombian public oil company, which is the largest company in the region and is listed in the BVC (Spanish acronym for Colombian Stock Exchange), won the legal battle against Pacific Rubiales.
This last one is the Canadian oil company, which also is listed in the BVC and in the TSE (acronym for Toronto Stock Exchange) and is the second largest company in Colombia regarding its market value, had a legal dispute with Ecopetrol for the royalties that the first one had to pay to this last one in the Quifa Field.
The Quifa Field represents for Pacific Rubiales its main source of profits and the dispute was in the clause in which Pacific Rubiales (owner of the 60% of the field) had to pay an extra royalty to Ecopetrol (owner of the remaining 40% of the field) when the international price of the crude surpasses a fixed price and when the Field started to produce over 5 million barrels.
The difference was that Ecopetrol said that the payment of that oil should price on the entire production, meanwhile Pacific Rubiales expected to make those payments over the 60%, which is the share that the Canadian company has on the Quifa Field.
The Court of Arbitration of the Chamber of Commerce of Bogota, which failed in favor of Ecopetrol Pacific Rubiales, failed in a final instance, which means that the Canadian oil company cannot file any further appeal.