Petróleos de Venezuela, S.A. (PDVSA) has concluded a fruitful negotiation with the ConocoPhillips company, in which it has managed to reach an agreement for the payment of compensation for the nationalization of the Hamaca and Petrozuata projects, as reported a press release issued by the company.
As will be recalled, in 2007 Venezuela began a sovereign process of nationalization of strategic resources, including those associated with the oil industry.
In relation to this action, in 2014 ConocoPhillips initiated an arbitration before the International Chamber of Commerce, demanding from PDVSA the payment of approximately 20 billion dollars based on the theory that PDVSA had unlimited responsibility for that sovereign act of the Republic.
In its award of April 24, 2018, the arbitration panel rejected that argument of the US oil company and determined that PDVSA should only pay, as compensation for the nationalization of the Hamaca and Petrozuata projects under the old association agreements, the sum of 1.87 billion dollars.
Once that ruling was issued, the parties negotiated the agreement signed this Saturday, as a result of which ConocoPhillips shall suspend or render ineffective all the measures taken to execute the arbitration award.
PDVSA, for its part, will pay part of the amount of the award within a reasonable period of time and then it will have a term of 4 and a half years to pay the remaining balance in quarterly installments.
The Venezuelan oil company continues its operations to serve the international and domestic market.
This agreement reached with ConocoPhillips demonstrates once again the firm will of PDVSA to reach commercial solutions with its creditors, indicates the bulletin, released this Sunday.
