ICC's award to Exxon Mobil dismisses Icsid case

The long arbitration between state-run oil holding Petróleos de Venezuela (Pdvsa) and US oil giant Exxon Mobil before Paris-based International Chamber of Commerce (ICC) for the nationalization of its assets at Cerro Negro heavy oil project at the Orinoco Oil Belt and La Ceiba included a decision to avoid "double compensation" for the claims filed at the ICC and the World Bank's International Centre for Settlement of Investment Disputes (Icsid).

The arbitration ruling concludes that Pdvsa, Pdvsa Cerro Negro and Exxon Mobil (which is presented as Mobil Cerro Negro) were asked whether "the parallel case filed in Icsid is relevant to the case" in the International Chamber of Commerce, and in case of a positive response, how and what would be the status of such proceeding.

According to the decision, if Mobil Cerro Negro "receives any compensation for damages (from Pdvsa) in this arbitration (before the ICC), and subsequently receives compensation for damages in the Icsid arbitration, Mobil Cerro Negro will refund Pdvsa and Pdvsa Cerro Negro for the payments previously made, whenever the payments relate to the same discriminatory measures."

etovar@eluniversal.com