Conoco Files For ICC Arbitration Against Venezuela's PDVSA
HOUSTON, Oct 10 (Reuters) - ConocoPhillips on Friday said it has filed for arbitration at the International Chamber of Commerce against Venezuela's state oil company PDVSA for compensation related to the termination of its partnership contract after the nationalization of oil projects.
The ICC filing is separate from the U.S. oil company's arbitration pending before the World Bank's International Center for Settlement for Investment Disputes (ICSID), it said.
"By filing ICC arbitration against PDVSA, we are pursuing contractual remedies that are available to us," said Janet Langford Kelly, ConocoPhillips' senior vice president, Legal, General Counsel and Corporate Secretary.
A representative at PDVSA was not immediately available to comment.
In September 2013, the ICSID tribunal ruled that Venezuela unlawfully expropriated ConocoPhillips' investment in the Petrozuata and Hamaca oil projects. The tribunal is now determining compensation for the assets.
On Thursday, ICSID ordered Venezuela to pay Exxon Mobil Corp $1.6 billion for oil assets that were nationalized in 2007. PDVSA said it expects to eventually pay closer to $1 billion.
Exxon had also filed for a separate ICC arbitration, to recover $907.6 million for the termination of its contract with PDVSA.
ConocoPhillips operated two heavy oil projects in the Orinoco Belt and another offshore project in Venezuela.
Shares of ConocoPhillips were down $1.16 or 1.6 percent at $70.28 on the New York Stock Exchange on Friday, hurt by a 1 percent decline in crude prices.
Crude oil traded on the New York Mercantile Exchange fell about 1 percent to $84.95 in morning trading.
(Reporting by Anna Driver and Marianna Parraga; Editing by Chizu Nomiyama and Tom Brown)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 12 Offshore Rigs
- Exxon, BP Targeted in NYC Suit That Relies on 'Nuisance' Theory (Jan 10)
- ConocoPhillips Vows Financial Discipline As Aims To Boost Output (Nov 08)
- ConocoPhillips' Profit Beats Estimates, But Budget Cut 10% (Oct 26)