Venezuela expects oil arbitrations in the second half of 2013
"We don't expect resolutions this year. Probably the biggest cases (Conoco and Exxon) will be resolved in the second half of 2013," Oil Minister Rafael Ramirez remarked
Exxon Mobil and ConocoPhillips demand USD 40 billion in compensations from the Venezuelan Government, yet Venezuela looks forward to paying a small portion of it.
Venezuela faces 20 cases filed with both the International Arbitration Court of the International Chamber of Commerce and The World Bank's International Centre for Settlement of Investment Disputes (Icsid), after it set off a wave of state takeovers.
"We don't expect resolutions this year. Probably the biggest cases (Conoco and Exxon) will be resolved in the second half of 2013," Oil Minister Rafael Ramírez remarked.
Venezuela's large number of compensation cases are being closely watched by the global oil industry as the imminent resolutions may set a precedent in future disputes involving producer states, which amid high oil prices lay down tougher conditions to foreign companies.
Industry analysts reckon Venezuela will end up paying USD 7-9 billion, which is less than what the companies expect, but more than what the Venezuelan Government seeks to pay (USD 2.5 billion). Analysts' estimates are based on the market value of the assets at the time of nationalization.
Translated by Jhean Cabrera
That political protest in Venezuela has lost momentum seems pretty obvious: people are no longer building barricades to block off streets near Plaza Francia in Altamira (eastern Caracas), an anti-government stronghold; no new images have been shown of brave and dashing protesters with bandanna-covered faces clashing with the National Guard in San Cristóbal, in the western state of Táchira; and those who dreamed of a horde of "Gochos" (Tachirans) descending in an avalanche to stir up revolt in Caracas have been left with no option but to wake up to reality.