Venezuela Faces Legal Setback in Trinidad and Tobago Over ConocoPhillips Claim

Trinidad and Tobago's High Court has upheld a decision recognizing ConocoPhillips' $1.33 billion arbitration claim against Venezuela. The ruling could freeze payments to Venezuela for joint natural gas projects. Venezuela and its company PDVSA missed the court's deadline to respond. This opens opportunities for ConocoPhillips to seize assets and enforce judgment.

Trinidad and Tobago's High Court has endorsed a decision that upholds U.S. oil producer ConocoPhillips' arbitration claim against Venezuela, potentially freezing payments for joint natural gas ventures between the Caribbean country and Venezuela.

Judge Frank Seepersad noted that Venezuela and its state-owned company PDVSA failed to meet the court's deadline to present their arguments. In May, Seepersad's ruling cleared the way for ConocoPhillips to enforce its $1.33 billion claim for past expropriations by seizing any compensation due from joint energy projects.

ConocoPhillips has been seeking similar enforcement in other Caribbean jurisdictions, following a substantial but incomplete settlement payment from PDVSA. Negotiations involving Trinidad, Venezuela, and energy firms like NGC and Shell continue for developing offshore gas fields, with potential financial implications for the involved parties.