Wednesday June 18, 2025
  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast
Versión Español
PanAm Post
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
PanAm Post
No Result
View All Result

Home » Venezuela Rejects International Ruling Against Expropriation

Venezuela Rejects International Ruling Against Expropriation

PanAm Post Staff by PanAm Post Staff
September 12, 2013
in News Brief
FacebookTwitterTelegramWhatsapp

Last week the International Centre for Settlement of Investment Disputes (ICSID) emitted a partial ruling against Venezuela, saying the nation had “breached its obligation to negotiate in good faith for compensation for its taking of the ConocoPhillips assets in the three projects on the basis of market value.” Venezuela has requested an appeal of the ruling that favors ConocoPhilips.

The tribunal based their decisions on the 1991 Treaty for Reciprocal Protection of Investments between the Netherlands and Venezuela (BIT), noted Asdrúbal Aguiar, current head of the legal commission for the Inter American Press Association (SIP-IAPA). The consequence of the ruling, that Venezuela “lacked” to act in “good faith,” set the date of valuation of the ConocoPhilips assets as the date of the “Award” and not the date of the taking, June 26, 2007, emphasized Aquiar to the PanAmerican Post.

RelatedArticles

Communist Weakness: Joe Biden’s Son Was Negotiating Business with China that Included Venezuela

Evo Morales Prepares Return to Bolivia with More Populism

October 29, 2020
Donald Trump, Restrictions Tourism Cuba

Donald Trump Imposes New Restrictions on Tourism in Cuba

September 28, 2020

Beyond that point, the tribunal dismissed arguments by ConocoPhilips for lost tax credit. The ruling concluded that costs associated with the tribunal and the proceeding would have to wait for future examination.

In a letter to the ICSID this week, Petroleum and Mines Minister Rafael Ramírez said Venezuela rejected the tribunal’s assessment that “we did not negotiate in good faith.” He emphasized, “We are willing to defend our country by whatever means and we have the elements to do so.”

ConocoPhillips originally demanded US$30 billion in compensation, but Miraflores offered US$2 billion.

In the early 1990s, Venezuela’s oil industry put in place various economic reforms to attract foreign investment to its extra-heavy crude oil deposits in the Faja Orinoco. The Petrozuata, Hamaca, and Corocoro projects were a direct result of Venezuela’s Apertura Petrolera policy.

ConocoPhilips labeled the ruling as a major milestone. “This ruling sends a clear message that countries cannot expropriate their investments without fair compensation,” said Janet Langford Kelly of the company’s legal counsel.

The Apertura Petrolera had been “very well thought out,” Robert Bottome said in an emailed interview, a Venezuelan economist and chief editor of the financial publication VenEconomía. Congress endorsed the policy, and it had produced important benefits for Venezuela, he noted.

New laws and changes in policy under the late President Hugo Chávez — that increased taxes and royalties with forced minority stakes in projects — lead to a series of expropriations in 2007.

Ramírez said that Venezuela had reached deals with other companies, such as Chevron.

Currently there are some 20 cases pending — including one with Exxon — at the ICSID and other courts resulting from the nationalizations. Venezuela withdrew from the ICSID in 2012, but must still answer to cases submitted beforehand.

PanAm Post Staff

PanAm Post Staff

Related Posts

Venezuela Opposition Leader Leopoldo López Will Consider Elections with Maduro
Colombia

Former President of Colombia Warns About “Neo-Communism” And “Stabilization of Dictatorship” in Venezuela

November 16, 2020
Communist Weakness: Joe Biden’s Son Was Negotiating Business with China that Included Venezuela
Venezuela

Venezuela Could Run Out of Gasoline Before Maduro’s Fraudulent Election

October 29, 2020
Communist Weakness: Joe Biden’s Son Was Negotiating Business with China that Included Venezuela
Bolivia

Evo Morales Prepares Return to Bolivia with More Populism

October 29, 2020
Donald Trump, Restrictions Tourism Cuba
Cuba

Donald Trump Imposes New Restrictions on Tourism in Cuba

September 28, 2020
Chilean Economy Declines
Chile

Chilean Economy Declines 12.4% in June Due to Coronavirus Pandemic

August 6, 2020
ELN, Venezuela, Terrorist
Colombia

45% of the Colombian Terrorist Group ELN is in Venezuela

May 10, 2019
Next Post
New Venezuelan Report Preaches Sabotage at Amuay Tragedy

New Venezuelan Report Preaches Sabotage at Amuay Tragedy

Subscribe free and never miss another breaking story

  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast

© 2024 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact

© 2024 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. Privacy and Cookie Policy.