Pdvsa to present new arguments in arbitration with ConocoPhillips
After the decision made by the International Chamber of Commerce ordering state-run oil holding Petróleos de Venezuela (Pdvsa) to pay the US oil company ConocoPhillips a USD 66.8 million compensation for production cuts ordered between 2006 and 2007, Rafael Ramírez, Minister of Petroleum and Mining argued that the US oil company had used in its lawsuit a letter signed by a Pdvsa medium level executive, which would be inquired by the Public Prosecution Office
The ICC concluded that Pdvsa had breached the agreements of the Petrozuata project when it ordered production cuts established by the Organization of Petroleum Exporting Countries (OPEC).
Back in that period, ConocoPhillips operated in Venezuela under a joint-venture with the Venezuelan state.
Dismissing the arguments, Rafael Ramírez, Minister of Petroleum and Mining said that the US oil company used in its lawsuit a letter signed by a Pdvsa medium level executive, which asserted that an indemnity would be pay in case of pumping cuts. The minister informed that they were to request the Venezuelan Public Prosecution Office to investigate that director, Reuters reported.
ConocoPhillips also hopes to get USD 30 billion in compensation at the International Centre for Settlement of Investment Disputes (Icsid) for the nationalization of its assets in the Orinoco Oil Belt in 2007.
Venezuela is currently facing about 30 billionaire international lawsuits for the expropriation of assets fostered by President Hugo Chávez.
Translated by Andrína Trujillo
José Vicente Rangel clearly said: "We are not conducting negotiations threatened with a gun in the head." He warned behind closed doors in the midst of the social upheaval occurred during the oil strike in 2002 and 2003. Dissenting Timoteo Zambrano answered back that no other option was available: "The thing is that otherwise, you do not negotiate."