Girish Gupta

HOME

BY COUNTRY

Brazil
Colombia
Cuba
Ecuador
Egypt
Guyana
Iraq
Jordan
Lebanon
Mexico
United Kingdom
Venezuela

BY MEDIUM

Text
Photo
Radio
TV/Video

BY PUBLISHER

Al Jazeera
BBC
BuzzFeed
CBC
Christian Science Monitor
CNN
Daily Mail
Datum
Ecologist
Economist Intelligence Unit
Emerging Markets
Financial Times
Foreign Policy
France 24
Fusion
GlobalPost
Guardian
Independent
La Prensa (Panama)
LatinFinance
Mancunion
Monocle
National (Abu Dhabi)
New Internationalist
New Statesman
New York Times
New Yorker
NPR
PBS
PRI
Radio France Internationale
Reuters
RTE
Sky News
Sun
Sunday Times
Telegraph
TIME
Times of London
USA Today
Vice
WLRN

ABOUT

About
CV
Contact (PGP Key)

Twitter
Facebook
LinkedIn
Venezuela ordered to pay compensation for expropriations
Oct. 10, 2014 — Caracas, Venezuela

Published by Economist Intelligence Unit

Event

A World Bank arbitration court determined that Venezuela must pay around US$1.6bn to ExxonMobil (US)—one‑sixth of what the company had initially sought—to compensate for the 2007 expropriation of its assets.

Analysis

A three‑member arbitration panel at the World Bank's International Centre for Settlement of Investment Disputes (ICSID) determined unanimously that ExxonMobil was owed US$1.4bn for the expropriation of the company's Cerro Negro project, US$179.3m for the expropriation of its La Ceiba project and a further US$9m for production and export curtailments imposed on the Cerro Negro project in 2006‑07. Annual compound interest of 3.25% from June 2007 is also to be added to the total sum.

In late 2011 the Paris‑based International Chamber of Commerce (ICC) awarded Exxon Mobil US$980m for the Cerro Negro expropriation. The ICC panel dealt only with litigation between ExxonMobil and Venezuela's state oil company, Petróleos de Venezuela (PDVSA). The ICSID ruling addresses the dispute between ExxonMobil and the Venezuelan state. Venezuelan authorities have indicated that they will pay out around US$1bn after factoring in the ICC award. Following the announcement of the ICC award, the late former president, Hugo Chávez (1999-2013), vowed that Venezuela would not abide by the ICSID award. Although Venezuela withdrew from ICSID in 2012, the court's rulings are applicable in cases filed before 2012.

There are currently 27 unresolved cases involving Venezuela at ICSID, totalling just under US$50bn. A major case involving another US energy corporation, ConocoPhillips, is expected to be determined in the coming months. During his 14-year tenure Mr Chávez nationalised assets in the country's mining and energy sectors, and increased state control over the economy.

Impact on the forecast

We expect Venezuela to pay the ICSID award and do not anticipate a payment of this size to have a substantial impact on Venezuela's ability to pay its other debts. We have made no changes to our forecasts at this time.

Filed from
Caracas, Venezuela






More...

Crisis-hit Venezuela halts publication of another major indicator
Mar. 21, 2017


Back in Venezuela, 'world's worst skier' proud of his performance
Feb. 26, 2017


Some poor Venezuelan parents give away children amid deep crisis
Dec. 15, 2016


Desperate to dump soon-worthless cash, Venezuelans flock to banks
Dec. 13, 2016


Inflation-hit Venezuela to pull largest bill from circulation
Dec. 11, 2016


Venezuela confirms bigger bills amid world's highest inflation
Dec. 04, 2016


Venezuela PDVSA awards $3.2 bln oil service contracts, protest brews
Sept. 21, 2016


Maduro revels in support from Zimbabwe, Iran as critics decry failed summit
Sept. 18, 2016


Venezuela summit draws few leaders in blow to Maduro
Sept. 17, 2016


Near Venezuela summit, pots-and-pans protest showed domestic tumult
Sept. 17, 2016


Once 'Pearl of Caribbean' gets new shine for Venezuela summit
Sept. 16, 2016


Maduro boasts start of Venezuela summit despite 'gringo pressure'
Sept. 13, 2016


Venezuela's troubles overshadow Non-Aligned Summit
Sept. 11, 2016


Venezuela renews drilling tender after earlier collapse - sources
Aug. 26, 2016


Hungry in a Venezuelan slum, a Facebook Live video
Aug. 04, 2016








© Girish Gupta