COMUNICACIONES / NOTICIAS
Caracas.- Venezuelan oil company Petróleos de Venezuela, S.A. (PDVSA) has concluded a fruitful negotiation with company ConocoPhillips, coming to an agreement respect to the compensation payment for Hamaca and Petrozuata projects nationalization.
As it was agreed upon in year 2007, Venezuela started a sovereign process of nationalization of strategic resources, among them those associated to the oil industry. In relation to such action, in year 2014, ConocoPhillips started an arbitration before the International Chamber of Commerce, suing PDVSA for the payment of approximately 20MMM USD, based upon the theory that PDVSA had unlimited responsibility for that sovereign action of the Republic. During the arbitral award of last April 24th, 2018, the conciliation panel rejected that argument from the North American oil company and determined that PDVSA only had to pay the amount of 1.87 MMUSD as a compensation for the nationalization of Hamaca and Petrozuata projects, in accordance with former association agreements.
Once this arbitral award issued, both parties negotiated the agreement subscribed last Saturday, as a result of which ConocoPhillips will have to suspend or revoke all measures taken to implement the arbitral award. On its side, PDVSA will pay a partial amount of the arbitral award in a reasonable time, and then will have a period of 4-5 years to pay the remaining balance in quarterly installments.
PDVSA continues its operations to serve the foreign and domestic market. This agreement reached with ConocoPhillips shows once more PDVSA firm will to reach trade solutions with its creditors. We keep working to consolidate PDVSA as the first national oil industry company.
