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US oil company ordered to pay billions in compensation to Ecuador

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US oil company ordered to pay billions in compensation to Ecuador

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An appeal court in Ecuador ruled that the US oil company Chevron should pay 18 billion dollars in damages after being accused of polluting the Amazon jungle and damaging the health of local residents.

Chevron was originally found to be liable in February last year and ordered to pay 8.6 billion dollars. But the amount has been more than doubled since the company failed to make an apology which was a stipulation of the first ruling.

The accusation is that a subsidiary of Chevron at the time, Texaco, dumped oil-drilling waste in unlined pits, polluting the forest and causing illness in indigenous people.

Chevron quickly denounced the appeal court’s decision, calling it illegitimate and fraudulent. It says it’s taking legal action to counter the ruling.