Explainer – Chevron Case in Ecuador – Glenn Specht Photographer

Here’s a clear, date-anchored explainer of the Ecuador–Chevron case and where it stands as of today.Dec 11 2025

1. What is “the Chevron case” in Ecuador?

It’s a pair of intertwined legal battles:

Lago Agrio / UDAPT case (Ecuadorian courts vs. Chevron)
– Amazonian communities sued over massive oil contamination from Texaco’s operations (1964–1992).
– They won a US$9.5 billion judgment in Ecuadorian courts, which Chevron has never paid. (Dismantle Corporate Power)
Chevron v. Ecuador (international investment arbitration)
– Chevron then sued the Ecuadorian state in international arbitration under the US–Ecuador Bilateral Investment Treaty (BIT).
– The arbitral tribunal found Ecuador had violated the BIT and ordered it to protect Chevron from the Ecuadorian judgment and pay compensation. (chevron.com)

So: the Amazonian communities vs. Chevron in one track, and Chevron vs. the Ecuadorian state in another.

2. Background: Texaco in the Ecuadorian Amazon (1964–1992)

1964–1992 – Texaco (later bought by Chevron) operated in a consortium in the northern Amazon (Sucumbíos / Orellana), drilling hundreds of wells, dumping produced water, and leaving hundreds of open waste pits. (Dismantle Corporate Power)
Communities and NGOs say this caused severe contamination of soil and water and long-term health impacts (higher cancer rates, miscarriages, etc.), which are still cited today. (Dismantle Corporate Power)
In the 1990s, Texaco did a limited remediation and signed agreements with the Ecuadorian state (1995 settlement, 1998 “final act”) under which the government released Texaco from further state claims.
- Victims’ claims were not included in that release, according to Ecuadorian courts and UDAPT. (Dismantle Corporate Power)
- Chevron argues that remediation was adequate and that any remaining pollution is mainly the responsibility of state company Petroecuador. (chevron.com)

3. The Lago Agrio case: communities vs. Chevron

3.1. From New York to Lago Agrio

1993 – Aguinda v. Texaco (USA)
Amazonian communities filed a class action in New York federal court. (Dismantle Corporate Power)
2001 – Chevron acquires Texaco.
2002 – At Chevron/Texaco’s request, the U.S. Court of Appeals (2nd Cir.) sends the case to Ecuador (forum non conveniens), based on Chevron’s arguments that Ecuadorian courts were the proper forum. (Dismantle Corporate Power)
2003 – Plaintiffs re-file in Lago Agrio (Nueva Loja). (Dismantle Corporate Power)

3.2. The US$9.5 billion judgment

Feb 14, 2011 – The Lago Agrio court finds Chevron liable for environmental damage and orders it to pay US$9.5 billion for environmental and social reparation (after later adjustments). (Dismantle Corporate Power)
Nov 12, 2013 – Ecuador’s National Court of Justice (Supreme Court) unanimously upholds the judgment and the US$9.5 billion figure. (Dismantle Corporate Power)
June 27, 2018 – The Constitutional Court of Ecuador rejects Chevron’s constitutional challenge, making the judgment final under Ecuadorian law. (Dismantle Corporate Power)

Chevron had already removed its assets from Ecuador, so the plaintiffs tried to enforce the judgment abroad (Canada, Brazil, Argentina). Those efforts have so far failed; courts in those countries have declined to reach Chevron’s assets. (Dismantle Corporate Power)

4. Chevron’s counter-offensive: RICO and investment arbitration

4.1. The U.S. RICO case against Donziger

2011 – Chevron sues the lead lawyer, Steven Donziger, in New York under RICO (racketeering law).
March 2014 – Judge Lewis Kaplan rules that the Ecuadorian judgment was procured by fraud, bribery and racketeering, and issues an injunction blocking enforcement in the United States. (theamazonpost.com)
Aug 8, 2016 – The Second Circuit Court of Appeals upholds that decision, confirming that the US$9.5 billion Lago Agrio judgment is unenforceable in the U.S. (chevron.com)

This does not erase the Ecuadorian judgment inside Ecuador, but it makes collecting from Chevron via U.S. courts practically impossible.

4.2. Chevron v. Ecuador under the US–Ecuador BIT

2009 – Chevron brings a BIT arbitration against the Ecuadorian state, arguing:
- Ecuador violated the settlement/release with Texaco.
- Ecuadorian courts denied Chevron justice and allowed a fraudulent judgment. (chevron.com)
The case is heard by a tribunal seated in The Hague under UNCITRAL rules (administered by the Permanent Court of Arbitration).

Key steps:

Sept 7, 2018 – The tribunal issues a liability award in favor of Chevron:
- It finds that the Lago Agrio judgment was tainted by fraud and corruption, and that Ecuador violated its international obligations.
- It orders Ecuador to prevent enforcement of the Lago Agrio judgment and to compensate Chevron for losses. (chevron.com)
Ecuador tries to annul the awards in Dutch courts.
- 2020 – The District Court of The Hague rejects Ecuador’s annulment request. (Business and Human Rights Centre)
- 2019 & 2023 – The Dutch Supreme Court upholds the arbitration awards, closing off Ecuador’s main challenges. (chevron.com)

So internationally, the arbitration system has largely sided with Chevron and against the Ecuadorian state, even while Ecuador’s own courts stand by the Amazonian communities’ judgment.

5. Money already paid before 2025

Separate from the Lago Agrio judgment, Chevron had earlier brought other BIT cases over older court judgments (the “Seven Cases”) in Ecuador.

In 2011 an arbitral award ordered Ecuador to compensate Chevron for those earlier disputes.
By 2016, Ecuador had paid Chevron about US$112 million (principal plus interest) to comply with that earlier BIT award. (Business and Human Rights Centre)

So Ecuador has already paid Chevron a substantial amount once, in a different arbitration related to the same broader conflict.

6. The new 2025 damages award: US$220.8 million

The 2018 liability award left open the question: how much must Ecuador actually pay Chevron for the Lago Agrio-related BIT case?

That has just been answered.

Nov 17, 2025 – The arbitral tribunal issues its Final Damages (Quantification) Award.
- It orders Ecuador to pay US$220,806,941.94 (about US$220.8 million), of which ~US$180.4 m is principal and ~US$40.4 m is pre-award interest. (Lexis S.A.)
- Chevron had asked for more than US$3.35 billion, so the tribunal cut about 93–94 % of the claim. (Lexis S.A.)
Dec 8–9, 2025 – Ecuador’s Procuraduría General del Estado (PGE) publicly announces the award and presents it in local media, emphasizing that the government “saved” over US$3.13 billion compared with Chevron’s claim. (El Telégrafo)

This is the US$220 million figure dominating the news now.

7. “Payment today”: what is the situation right now?

As of today (11 December 2025):

The US$220.8 million award is final and “enforceable” in the arbitral sense, but:
- According to the Procurador Juan Carlos Larrea, there is still:
  - a brief window (about a week) to request corrections for calculation errors, and
  - three months for either side to request annulment of the award in Dutch courts. (Primicias)
Ecuador has NOT yet paid the US$220.8 million.
- Larrea states explicitly that the Ministry of Economy and Finance must now decide whether to pay, negotiate a payment schedule, or pursue those remaining legal options. (Primicias)
Political and social reactions inside Ecuador:
- The government and pro-Noboa media frame the outcome as a “victory” because billions were avoided and the amount was reduced by over 90 %. (El Telégrafo)
- The Amazonian plaintiffs’ organization UDAPT and allies condemn the award, pointing out that:
  - Ecuador has already paid around US$112 million before,
  - adding this new award brings total payments to nearly US$400 million,
  - while the Amazonian communities still haven’t received any money from Chevron for the US$9.5 billion judgment. (UDAPT)
- Government-aligned legislators (ADN) are pushing a “Ley de Repetición” so that the state could try to recover the US$220 million from former officials they blame—especially figures from the Correa era, when the Lago Agrio case was politicized. (El Oriente)
- Civil-society groups have filed actions to block payment or to seize the arbitral award in favor of the Amazonian communities instead. (radiopichincha.com)

So, as of today:

US$112 million (older award) – already paid to Chevron (2016).
US$220.8 million (2025 award) – owed but not yet paid; the government is deciding whether and how to comply, under intense internal political pressure.

8. Big picture: where does this leave everyone?

Amazonian communities (Lago Agrio/UDAPT)
- They still hold a US$9.5 billion Ecuadorian judgment that has not been collected anywhere.
- They argue the arbitration system has punished the state instead of the polluter, while oil contamination and health impacts persist. (Dismantle Corporate Power)
Chevron
- It has been shielded from paying the Ecuadorian judgment in key jurisdictions (U.S., Canada, Netherlands, etc.). (chevron.com)
- It has already received US$112 million and now holds a new award for US$220.8 million against the Ecuadorian state. (Business and Human Rights Centre)
Ecuadorian state
- Politically squeezed: paying Chevron is deeply unpopular domestically, but not paying risks further enforcement actions abroad, damage to creditworthiness, and tension with the U.S.
- Noboa’s government is trying to portray the 93 % reduction as a diplomatic/legal success, while blaming past governments for exposing the country to liability.

9. Very short summaries (EN / ES)

English – 5-line summary

Texaco (now Chevron) operated in Ecuador’s Amazon from 1964–1992 and left widespread contamination, according to local communities.
In 2011, an Ecuadorian court condemned Chevron to pay US$9.5 billion; Ecuador’s Supreme and Constitutional Courts later confirmed that judgment, which Chevron has never paid.
Chevron responded with a RICO case in New York against the plaintiffs’ lawyer and a BIT arbitration against Ecuador, arguing the Ecuadorian judgment was fraudulent.
The BIT tribunal and Dutch courts sided with Chevron, ordering Ecuador to block enforcement of the Lago Agrio judgment and to compensate Chevron.
Ecuador has already paid US$112 million, and a new 2025 award now orders it to pay US$220.8 million more—money not yet paid as of today.

Español – resumen en 5 líneas

Texaco (hoy Chevron) operó en la Amazonía ecuatoriana entre 1964 y 1992 y, según las comunidades locales, dejó una contaminación masiva.
En 2011 un tribunal de Lago Agrio condenó a Chevron a pagar US$9.500 millones; la Corte Nacional y la Corte Constitucional confirmaron esa sentencia, pero Chevron no ha pagado.
La empresa respondió con una demanda RICO en Nueva York contra el abogado de los demandantes y con un arbitraje de inversión contra el Estado ecuatoriano, alegando fraude en la sentencia.
El tribunal arbitral y la justicia neerlandesa fallaron a favor de Chevron, ordenando a Ecuador impedir la ejecución de la sentencia de Lago Agrio y pagar indemnización a la empresa.
Ecuador ya pagó unos US$112 millones y, con el nuevo laudo de 2025, debe US$220,8 millones adicionales, que todavía no se han cancelado al día de hoy.