ICC Court orders Venezuela to pay USD 66.8 million to ConocoPhillips

The Paris-based court found that Venezuelan oil company Pdvsa breached the agreements signed with ConocoPhilips in relation with the Petrozuata project, as the Venezuelan company adopted oil production cuts under OPEC in 2006-2007

ConocoPhillips also sued Pdvsa at the Icsid for billionaire compensation (File photo)

EL UNIVERSAL

Friday September 21, 2012 12:10 PM

US oil company ConocoPhillips confirmed on Friday to AFP that the International Arbitration Court of the International Chamber of Commerce has ruled against Venezuelan state-owned company Pdvsa, which now will have to pay a compensation of USD 66.8 million to the US oil company for oil production cuts implemented in 2006-2007.

The Paris-based court found that Pdvsa breached the agreements signed with ConocoPhilips in relation with the Petrozuata project, as the Venezuelan company "adopted oil production cuts under OPEC," informed to AFP Davy Kong, ConocoPhilips' spokesperson.

Such cuts were implemented right before Venezuela seized the assets of ConocoPhilips. Upon such action, the US oil company decided to sue Pdvsa before the International Center for Settlement of Investment Disputes (Icsid) seeking a billionaire compensation.

However, the ruling of the ICC International Arbitration Court "is independent and has no impact on the case of ConocoPhillips vs. Venezuela in the Icsid," explained Kong.

Translated by Jhean Cabrera

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