ICSID Rules ConocoPhillips Seizure Represents Lack Of Good Faith


News: The International Centre for Settlement of Investment Disputes (ICSID) has declared that the Venezuelan government failed to act in good faith or offer adequate compensation to US-based ConocoPhillips for the takeover of its three major oil assets in the country. The Venezuelan government offered only US$2bn compared to the company's demand of US$30bn in compensation for the expropriation of stakes in the Hamaca and Petrozuata projects in the Orinoco heavy-crude belt and a separate offshore project called Corocoro. However, the ruling, which excluded future tax credits from the company's compensation claims, did not specify the exact amount the Venezuelan government owes to ConocoPhillips.

This article is tagged to:
Sector: Oil & Gas
Geography: United States, Venezuela