• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 30 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days The United States produced more crude oil than any nation, at any time.
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 21 hours Bad news for e-cars keeps coming
  • 3 days China deletes leaked stats showing plunging birth rate for 2023
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Debate Rages Over Global Oil Demand

Debate Rages Over Global Oil Demand

Easing inflation has boosted bullish…

China's No Limits Friendship with Russia is Beginning to Crumble

China's "No Limits" Friendship with Russia is Beginning to Crumble

China's relationship with Russia reexamined…

Venezuela: $2B Award In Favor Of Conoco A “Tough Lesson” For U.S. Oil Firm

Venezuela continues to strain its relations with U.S. oil companies—the International Chamber of Commerce (ICC) has ruled in favor of ConocoPhillips in an expropriation dispute with state oil firm PDVSA, yet Venezuela touts the US$2.04-billion award to the U.S. firm as a “tough lesson” for Conoco, considering that the award is less than 10 percent of the original claim.

The government of Nicolas Maduro is still reviewing the ICC ruling against Venezuela’s state oil firm PDVSA for possible appeal, according to a Venezuelan statement quoted by Reuters.

ConocoPhillips is owed US$2.04 billion from PDVSA and two of its subsidiaries as a result of the ICC decision, the U.S. oil firm said on Wednesday. The ruling is in response to the expropriation of ConocoPhillips’s investments in the Hamaca and Petrozuata heavy crude oil projects in Venezuela in 2007 and other pre-expropriation fiscal measures.

“We are pleased with the ICC tribunal’s decision,” said Janet Langford Carrig, senior vice president, Legal, general counsel and corporate secretary of ConocoPhillips. “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.”

The ICC arbitration ruling is final and binding, ConocoPhillips said, adding that it would “pursue enforcement and seek financial recovery of its award to the full extent of the law.”

Related: A Geopolitical Red Herring For Oil Markets

ConocoPhillips is separately suing the government of Venezuela before a tribunal under the auspices of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID). The tribunal has ruled that Venezuela’s expropriation of ConocoPhillips’s investments violated international law, and it is due to rule on the amount of compensation owed to ConocoPhillips.

The ConocoPhillips-Venezuela legal duel is just one of the disputes that Maduro is taking on with foreign, mostly U.S., oil companies.

Two Chevron workers arrested in Venezuela last week could reportedly face treason charges. The employees, who oversaw the Petropiar project co-owned by PDVSA and Chevron, were jailed when they allegedly refused to sign supply contracts concocted by PDVSA that skipped the normal competitive bidding process, according to multiple sources. The parts mentioned in the contract were reportedly double the fair market price.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News