Chevron appealed that decision twice, but on both occasions the decision was upheld by the Ecuadorian judicial system. However, the irate US conglomerate decided to take its case to The Hague’s Permanent Court of Arbitration, claiming that it had already been exonerated and cleared of any wrongdoing.

The Dutch court decided Ecuador was guilty of ‘denial of justice’ and ordered it to annul its sentence against Chevron. Lawyers working on behalf of Chevron argued that the plaintiffs had promised payments to an Ecuadoran judge in return for being permitted to draft significant portions of the ruling against the US energy colossus.

"We are concerned that a court can ask a state to cancel a judgement by a national court in a case between private entities," said Salvador.

The long-running saga stems from Chevron's acquisition of former rival Texaco in 2001.

Chevron has never worked directly in Ecuador, but Texaco Petroleum operated in the South American country from 1964 to 1990 - and was subsequently accused of causing environmental damage. Environmental activists said that the presence of Texaco Petroleum caused irreversible damage to the Amazon jungle during its 26 year stint in the country.

Thousands of indigenous villagers from the Lago Agrio region have claimed they have fallen ill - and even in some cases have developed cancer from pollution in their water supply.

An Ecuadoran court originally ordered Chevron to pay $19 billion in damages before the country's Supreme Court decided to uphold the ruling but halved the amount. It filed a fraud case against Ecuador at a district court in New York, winning that and a $96 million award against the South American country.