Trinidad and Tobago High Court Upholds ConocoPhillips’ Arbitration Claim Against Venezuela

Trinidad and Tobago's High Court has upheld a decision allowing U.S. oil producer ConocoPhillips to enforce a $1.33 billion arbitration claim against Venezuela. The ruling permits ConocoPhillips to target compensation from joint natural gas projects, potentially freezing payments to Venezuela. The case stems from past expropriations by Venezuela.

Trinidad and Tobago's High Court reaffirmed on Thursday a landmark decision recognizing U.S. oil producer ConocoPhillips' arbitration claim against Venezuela. This ruling could potentially freeze payments to the Caribbean nation for joint natural gas projects.

In May, the court's initial decision paved the way for ConocoPhillips to seek enforcement of a $1.33 billion claim due to past expropriations by seizing any compensation from joint energy ventures. Judge Frank Seepersad noted the lack of response from Venezuela and its state-owned PDVSA, further solidifying the ruling.

ConocoPhillips has made similar enforcement attempts in other Caribbean countries. The U.S. oil giant also leads creditors in seeking proceeds from the auction of shares in a PDVSA subsidiary, PDV Holding, which owns Houston-based refiner Citgo. The implications of this ongoing legal battle may significantly impact energy collaboration in the region.

(With inputs from agencies.)