Holland & Knight Secures Win for Hupecol Operating Co. in International Arbitration

AUSTIN (February 15, 2024) – Holland & Knight attorneys recently secured an international arbitration win for Hupecol Operating Co. LLC in a dispute involving nearly $30 million in alleged damages.

Headquartered in San Antonio, Texas, Hupecol is a leading independent oil and gas exploration and production company that has had a significant presence in Colombia for the past 20 years.

The dispute involved a breach of contract claim brought by a Mississippi-based company alleging various breaches of a farmout agreement executed between Hupecol and the claimant in 2013 for the exploration and production of hydrocarbons in Colombia. Local opposition prevented the project from moving forward and raised novel questions concerning the often-overlooked "social license to operate" in Colombia. The claimant filed the arbitration under the auspices of the International Center for Dispute Resolution (ICDR) against Hupecol claiming nearly $30 million in damages. Following a two-week evidentiary hearing, the three-person arbitration panel found unanimously in favor of Hupecol and awarded Hupecol court costs.

Holland & Knight's representation of Hupecol was led by Partners Orlando Segura and Juan Alcala and Associate Vanessa Suarez from Holland & Knight's Austin office and by Partner José Vicente Zapata from Holland & Knight's Bogotá, Colombia, office. They were assisted by Senior Counsel Estefanny Pardo, Partner Juan Casallas and Associates Heather Montoya and María Natalia Suárez Martinez. Porter Hedges LLC acted as co-counsel.