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LatinNews Regional Monitor: Andean Group - 11 May 2018
In brief: Venezuela
Venezuela: Venezuela’s state-owned oil firm, Pdvsa, has rejected the move by US oil firm ConocoPhillips to seize its oil assets in the Caribbean. ConocoPhillips’ move came after an International Chamber of Commerce (ICC) arbitration panel last month ruled in favour of the US firm in its long-running legal case against its former partner Pdvsa for breaking a joint contract, and ordered the Venezuelan firm to pay US$2bn in compensation. Pdvsa has refused to pay and so ConocoPhillips has obtained a court order allowing it to seize Pdvsa oil barrels (believed to number 15m barrels, worth some US$750m) located in the Dutch dependencies of Curaçao, Bonaire, and Sint Eustatius in lieu of payment. ConocoPhillips insists that its actions are legal and that it just wants to secure the awarded compensation payment from Pdvsa. However, in a statement Pdvsa has rejected the actions and said that this is a “coercive measure” that will not help to solve the dispute. Pdvsa also reiterated its commitment to finding a “legal and peaceful resolution to the dispute”. According to sector analysts, the move by ConocoPhillips severely hampers Pdvsa’s capacity to export oil to the US and could negatively affect Venezuela’s domestic economy.
