Ecuador Triumphs in International Arbitration, Avoids $198 Million Payment to Worley

(Reuters) — Ecuador's procurator said on Friday the country has won an international arbitration and will not be liable to pay $198 million to engineering firm Worley International Services over oil project contracts.

The company sued Ecuador in 2019 over alleged missing payments from contracts with state-run Petroecuador connected to the renovation of the Esmeraldas refinery and other gas projects.

The three international arbiters found in favor of Ecuador, the procurator said in a statement.

"The tribunal accepted the arguments made by the republic of Ecuador and rejected the aspirations of WorleyParsons," the statement said, using a previous name for the Australia-headquartered company.

Worley will be obliged to pay Ecuador's fees and costs for the arbitration process, the statement added.

Worley did not immediately respond to a request for comment.

The ruling comes as the South American country faces liquidity problems and a likely deficit for the year of some $5.7 billion.

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