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Thursday, January 23, 2025

Venezuela loses appeal of $8.5B ConocoPhillips arbitration award

 An international arbitration court upheld an award that ordered Venezuela to pay ~$8.5B to ConocoPhillips (NYSE:COP) over the expropriation of its crude oil assets in 2007, Argus reported Thursday.

The World Bank's International Centre for the Settlement of Investment Disputes rejected Venezuela's appeal, which was based on various arguments over the costs awarded.

"The decision upholds the principle that governments cannot unlawfully expropriate private investments without paying compensation," the company said of the ruling.

Venezuela's latest appeal with ICSID came after a U.S. federal court in 2022 cleared ConocoPhillips (COP) to try to collect the $8.5B award, which has an annually compounded interest rate of 5.5%.

Collection of the award seems unlikely, given the multiple claims in international courts totaling more than $60B against Venezuela, whose international assets are dwindling.

https://www.msn.com/en-us/money/markets/venezuela-loses-appeal-of-8-5b-conocophillips-arbitration-award/ar-AA1xKU5t

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