ConocoPhillips reaches an agreement with PDVSA against payment of 2 billion dollars

The American oil company ConocoPhillips said on Monday that it has reached an agreement with the Venezuelan state oil company PDVSA about the payment of nearly 2 billion dollars for the early dissolution of joint projects after the nationalization of the South American oil sector.

In April, the International Chamber of Commerce instructed PDVSA to pay ConocoPhillips because it considered that the Venezuelan company did not have any contractual obligations.

ConocoPhillips started in May with the seizure of the assets of PDVSA.

The Venezuelan oil company agreed to a first investment of nearly $ 500 million within a 90-day period from the time of signing the agreement, ConocoPhillips said in a statement.
The remaining amount is paid quarterly over a period of four and a half years, he added.

The assets of ConocoPhillips in Venezuela were expropriated in 2007 as part of the nationalization policy.

The world's largest independent oil and gas producer left Venezuela after it failed to reach a consensus with the state to turn its projects into joint ventures managed by PDVSA.

ConocoPhillips said it agreed to suspend its legal actions against PDVSA after the agreement.

Source: Reuters

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