Ministry of Economy wins case linked to Oceanography
The Mexican Ministry of Economy won a case on an investment made by a Singaporean company related to the Mexican company Oceanografía.
On January 11, 2022, an international tribunal established under the Agreement for the Reciprocal Protection and Promotion of Investments between the government of Mexico and the government of Singapore (APPRI Mexico-Singapore), dismissed virtually all of PACC Offshore Services Holdings‘ claims against the Mexican State.
POSH is a Singaporean company that maintained a commercial relationship with the Mexican company Oceanografía (Oceanografía), to which it chartered vessels through Mexican and Singaporean subsidiary companies.
Ministry of Economy
In POSH’s opinion, some acts carried out by Mexican authorities directed at Oceanografía affected its investments in Mexico.
Given this situation, POSH claimed financial compensation against the Mexican State in excess of 227 million dollars.
The Court dismissed POSH’s claims on the grounds that they lacked merit, considering that the acts of the Mexican authorities were not expropriatory and were not unjust and inequitable, except for a measure related to the temporary detention of some vessels owned by POSH.
The majority of the Court ordered Mexico to pay POSH approximately 6.7 million dollars as compensation, which is equivalent to less than 3% of the amount initially claimed.
“The defense of the Mexican State demonstrated that practically all of POSH’s claims lacked merit and that the quantification of the damages claimed was inappropriate, thereby avoiding a multimillion-dollar sentence against Mexico,” said the Ministry of Economy.