Running a global oil company is as much about diplomacy as it is business strategy. Billions have been won and lost over the years as governments from Russia to Nigeria to Argentina change the terms on contracts with global oil firms to develop their assets.
Generally, oil companies have little recourse but to roll over and take what's given them, which is why it is so interesting that Chevron is fighting back against court corruption in Ecuador, as reported in today's Washington Post by reporters Steven Mufson and Juan Forero.
The company secured video of the judge in the case speaking of it being over and about distributing the proceeds from the ruling and posted them to its website.
The suit in question alleges Chevron-owned Texaco dumped toxic wastes into waterways in Ecuador from 1972 to 1990, exactly the kind of case corporations usually settle quickly to reduce the bad press. In fact, such a settlement was in place, ending Texaco's responsibility in 1998. The government Ecuador came back for more and rather than extorting additional payments, seemed to have ensnared a substantial portion of Ecuador's government, including the sister of President Rafael Correa.
The plaintiffs' attorney refers to Chevron posting the video of the alleged corruption a "dirty trick," and if so, he should get used to it. No longer at the mercy of limited media distribution channels and better able to tell their side of the story, corporate leaders will become increasingly aggressive with these tactics.
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