The Tribunal in PACC Offshore Services Holdings Ltd v. Mexico, established pursuant to the Mexico-Singapore APPRI

#SecretaríaDeEconomía.- On January 11, 2022, an international tribunal established under the Agreement for the Reciprocal Protection and Promotion of Investments between the Government of the United Mexican States and the Government of the Republic of Singapore («Mexico-Singapore APPRI»), dismissed virtually all claims of PACC Offshore Services Holdings Ltd («POSH») against the Mexican State.

POSH is a Singaporean company that had a business relationship with the Mexican company Oceanografía, S.A. de C.V. («Oceanografía»), to which it chartered vessels through Mexican and Singaporean subsidiaries. In POSH’s opinion, certain acts performed by Mexican authorities directed to Oceanografía affected its investments in Mexico. In view of this situation, POSH claimed an economic compensation against the Mexican State in excess of US$227 million.

The Tribunal dismissed POSH’s claims because they lacked merit, considering that the acts of the Mexican authorities were not expropriatory and were not unfair and inequitable, except for a measure related to the temporary detention of some vessels owned by POSH. In view of this situation, the majority of the Tribunal ordered Mexico to pay POSH approximately US$6.7 million as compensation, which is less than 3% of the amount initially claimed.

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