International Tribunal Rules That Ecuador′s Taking of ConocoPhillips′ Investment in August 2009 Constituted Unlawful Expropriation in Violation of Ecuador′s International Law Obligations
ConocoPhillips′ [NYSE:COP] wholly owned subsidiary, Burlington Resources
Inc., has received a favorable decision in the international arbitration
filed against Ecuador. The Tribunal, constituted under the International
Centre for the Settlement of Investment Disputes (ICSID), ruled that
Ecuador unlawfully expropriated the company′s significant oil
investments in Blocks 7 and 21, in violation of the U.S.-Ecuador
bilateral investment treaty.
The Tribunal also found that Burlington′s investment, expropriated by
Ecuador, included the contractual right to be indemnified for the
effects of the Windfall Profits Tax (Law 42).
'This decision sends a message that contracts must be honored and
governments cannot expropriate investments without compensation,? said
Janet Kelly, senior vice president, Legal and General Counsel. 'The
ruling confirms that Ecuador′s actions were not in accordance with
international law.?
While this ruling is an essential step in the process, the Tribunal has
not yet issued a decision on damages. An additional arbitration phase
will take place to determine the amount of compensation owed to
Burlington for Ecuador′s actions.
# # #
About ConocoPhillips
Headquartered in Houston, Texas, ConocoPhillips had operations and
activities in 30 countries, $115 billion of assets, and approximately
16,700 employees as of Sept. 30, 2012. Production averaged 1.57 million
BOE per day for the nine months ended Sept. 30, 2012, and proved
reserves were 8.4 billion BOE as of Dec. 31, 2011. For more information,
go to www.conocophillips.com.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE 'SAFE HARBOR' PROVISIONS
OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements.
Forward-looking statements relate to future events and anticipated
results of operations, business strategies, and other aspects of our
operations or operating results. In many cases you can identify
forward-looking statements by terminology such as 'anticipate,'
'estimate,' 'believe,' 'continue,' 'could,' 'intend,' 'may,' 'plan,'
'potential,' 'predict,' 'should,' 'will,' 'expect,' 'objective,'
'projection,' 'forecast,' 'goal,' 'guidance,' 'outlook,' 'effort,'
'target' and other similar words. However, the absence of these words
does not mean that the statements are not forward-looking. Where, in any
forward-looking statement, the company expresses an expectation or
belief as to future results, such expectation or belief is expressed in
good faith and believed to have a reasonable basis. However, there can
be no assurance that such expectation or belief will result or be
achieved. The actual results of operations can and will be affected by a
variety of risks and other matters including, but not limited to,
changes in commodity prices; changes in expected levels of oil and gas
reserves or production; operating hazards, drilling risks, unsuccessful
exploratory activities; difficulties in developing new products and
manufacturing processes; unexpected cost increases; international
monetary conditions; potential liability for remedial actions under
existing or future environmental regulations; potential liability
resulting from pending or future litigation; limited access to capital
or significantly higher cost of capital related to illiquidity or
uncertainty in the domestic or international financial markets; and
general domestic and international economic and political conditions; as
well as changes in tax, environmental and other laws applicable to our
business. Other factors that could cause actual results to differ
materially from those described in the forward-looking statements
include other economic, business, competitive and/or regulatory factors
affecting our business generally as set forth in our filings with the
Securities and Exchange Commission. Unless legally required,
ConocoPhillips undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
ConocoPhillips
Daren Beaudo (media), 281-293-2073
daren.beaudo@conocophillips.com
Vladimir
R. dela Cruz (investors), 212-207-1996
v.r.delacruz@conocophillips.com
Media
Relations: 281-293-1149
www.conocophillips.com/media
