Final and binding ICC award is for “Venezuela’s unlawful and uncompensated expropriation of ConocoPhillips’ investments”

ConocoPhillips (NYSE: COP) said that an international arbitration tribunal ruled it was due $2.04 billion from Petróleos de Venezuela, S.A. (PDVSA) and two of its subsidiaries, under arbitration rules of the International Chamber of Commerce (ICC).

The ruling arises out of ConocoPhillips’ contracts with those entities and is in response to the expropriation of ConocoPhillips’ investments in the Hamaca and Petrozuata heavy crude oil projects in Venezuela in 2007 and other pre-expropriation fiscal measures, the company said. PDVSA is Venezuela’s state-owned oil company.

“The ruling upholds the contractual protections to which ConocoPhillips is entitled under the applicable agreements and acknowledges PDVSA’s independent contractual liability arising from the government of Venezuela’s unlawful and uncompensated expropriation of ConocoPhillips’ investments,” said Janet Langford Carrig, senior vice president, Legal, general counsel and corporate secretary of ConocoPhillips.

ConocoPhillips Due $2.04 Billion from Venezuela: Tribunal

Hugo Chavez as he nationalized the Orinoco Oil Belt and the ConocoPhillips assets in Venezuela – Photo: PDVSA

ConocoPhillips said it will pursue enforcement and seek financial recovery of its award to the full extent of the law.

Conoco said the ICC arbitration is a separate and independent legal action from ConocoPhillips’ investment treaty arbitration against the government of Venezuela, which is pending before a tribunal under the auspices of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID).

The ICSID tribunal has ruled that Venezuela’s expropriation of ConocoPhillips’ investments violated international law, and proceedings are currently ongoing to determine the amount of compensation owed to ConocoPhillips.


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