The Ecuadoran government has been threatening to cancel a contract with US petroleum corporation Occidental after a ruling in a legal dispute regarding US$75 million in taxes Ecuador collected from the company went in Occidental's favor. A London-based international arbitration court has said Ecuador improperly collected the money and should return it to Occidental, or Oxy, but Ecuadoran officials said Oxy had not complied with a contract it had signed with the country, and they were looking at rescinding the deal. This comes as Ecuador struggles with a drought-induced emergency in its electrical sector and the president and Congress battle about proposed changes to the nation's laws on hydrocarbons.
NotiCen writers. "ECUADOR CONSIDERS CANCELING OCCIDENTAL CONTRACT, REFORMING HYDROCARBONS LAW." (2004). http://digitalrepository.unm.edu/la_energy_notien/175