ConocoPhillips 'not close' to recouping $2 bln from PDVSA -CEO

Remigio Civitarese
Mag 16, 2018

Two weeks ago, ConocoPhillips obtained two court orders for the seizure of PDVSA assets in the Caribbean in an attempt to enforce a court ruling that has awarded the USA company with US$2 billion in compensation for the forced nationalization of its assets by the Hugo Chavez government 11 years ago.

Conoco has won court orders allowing it to begin seizing PDVSA assets in efforts to collect on the award by the International Chamber of Commerce (ICC) over the 2007 nationalization of its projects in Venezuela. "That threatens to further limit revenue at the state-controlled firm, the single largest moneymaker for the OPEC-member nation". "We're just trying to look where all the assets are".

Conoco has filed with courts in the United States, Hong Kong, the United Kingdom and throughout the Caribbean in an attempt to begin the legal process of seizing additional PDVSA assets, said Lance.

Citgo Petroleum typically uses Aruba terminal to store Venezuelan and other crudes for supplying its US refineries.

In Asia, PDVSA is co-owner with PetroChina 601857.SS of CV Shipping Pte Ltd, a Singapore-based tanker operator, according to CV Shipping's website. The vessels hold more than 3 million barrels of oil products, including heavy virgin naphtha and gasoline blendstock.

In Europe, PDVSA is a co-owner with Finland's Neste Corp of AB Nynas Petroleum, according to PDVSA's website.

The moves have disrupted fuel deliveries throughout the Caribbean, much of which depends on PDVSA.

"We're trying to minimize any impact that this might have on the islands in the Caribbean", Lance said. If Conoco seizes all targeted assets, which include a refinery, also on Curacao, and several storage facilities on two other islands in the Caribbean, it would seriously aggravate the struggling company's situation.

Last week, Curacao officials said the Isla refinery would have to halt refining operations once its available inventories were exhausted because new shipments of Venezuelan crude are not being sent to the region.

Houston-based Conoco has two other outstanding arbitration awards against PDVSA.

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