Pan American Energy LLC v. Plurinational State of Bolivia (ICSID Case ARB/10/8)
Pan American Energy LLC retained Dr. Manuel A. Abdala and Professor Pablo T. Spiller to provide expert advice and testimony on the economic impact of several measures affecting its investments in Empresa Petrolera Chaco S.A. in Bolivia. These measures included regulatory changes stemming from legislation issued back in 2006, and which ultimately included changes to price regulations, increases in royalties and eventually the expropriation of its 50% ownership (which the Government transferred to YPFB’s, Bolivia’s state-run oil and gas company). The Compass Lexecon team performed valuation, regulatory and damages analyses in a context of evolving regulatory, taxation and product market conditions. A settlement was signed in December 2014 allowing Pan American to recover US$357 million, this is said to be the highest Bolivia has ever agreed to with a foreign investor.
Manuel Abdala and Pablo Spiller were assisted by a team led by Carla Chavich and Ariel Medvedeff of Compass Lexecon’s New York and Buenos Aires offices, respectively. Other team members included Marcelo Schoeters, Daniela Bambaci, Gustavo De Marco, and Luisa Foster. Compass Lexecon worked closely with Nigel Blackaby and Noiana Marigo of Freshfields Bruckhaus Deringer LLP.