This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

World Bank tribunal rejects Venezuela appeal over nationalised Conoco assets

17 March 2014

World Bank tribunal The International Center for Settlement of Investment Disputes (ICSID) has rejected Venezuela's request for a new hearing to contest a 2013 partial ruling that it failed to act in good faith regarding negotiations to compensate US oil company ConocoPhillips for nationalised assets.

The dispute dates from then-President Hugo Chavez's government's takeover of three oil projects in 2007. ConocoPhillips initially asked Venezuela for $30 billion compensation for its stakes in the Hamaca and Petrozuata heavy crude upgraders and a separate offshore project called Corocoro.

Venezuela's state oil company PDVSA said the decision last year was unfair because it had offered $2.3 billion in compensation, which was higher than its $1.8 billion estimate of the assets' value, excluding tax and royalties claims.

While saying Venezuela had not acted in good faith, September's partial ruling did not determine how much money it must pay the US-based company. It also limited the scope of ConocoPhillips' claims by excluding future tax credits.

Several major foreign oil companies, including Chevron, were able to reach agreements with the Chavez government and give up majority stakes in projects while hanging onto minority ones.
ExxonMobil and ConocoPhillips did not reach accords and eventually took their claims to arbitration.

Venezuela has more than 20 arbitration cases pending at ICSID and other courts stemming from Chavez's nationalisations. The country pulled out of the tribunal in 2012, but will still be subject to cases submitted beforehand.


Contact Details and Archive...

Print this page | E-mail this page

CSA Sira Test