ConocoPhillips has achieved a significant legal triumph as the World Bank’s arbitration tribunal dismissed Venezuela’s bid to annul an $8.37 billion compensation award. The International Centre for Settlement of Investment Disputes (ICSID) upheld its earlier ruling, which declared the expropriation of Conoco’s Petrozuata, Hamaca, and Corocoro oil projects by Venezuela’s government as unlawful. This decision marks one of the largest arbitration awards for a foreign firm, stemming from the nationalization policies under late President Hugo Chavez.
The tribunal also ordered Venezuela to cover $1.35 million in procedural costs and $6.46 million in Conoco’s legal fees. ConocoPhillips, which has pursued legal avenues to recover its losses since 2007, reaffirmed its commitment to protecting its rights. The company has been actively seeking Venezuelan assets overseas, including pursuing payments in Trinidad and Tobago and participating in a high-profile case to auction Citgo Petroleum shares. This ruling reinforces investor protections and highlights the consequences of unlawful expropriation on the global stage.
