ConocoPhillips settles with Venezuela's PDVSA to recover $2 billion

(Reuters) – U.S. oil producer ConocoPhillips said on Monday it has settled with Venezuela’s state-run oil company, PDVSA, to recover about $ 2 billion for early dissolution of some joint ventures following the nationalization of the country’s oil industry.

The logo of Venezuelan oil company PDVSA is seen on a tank at Isla refinery in Willemstad on the island of Curacao April 22, 2018. REUTERS/Andres Martinez Casares

The settlement follows a ruling by the International Chamber of Commerce (ICC) in April that ordered PDVSA to pay Conoco $ 2 billion.

PDVSA has agreed to make an initial payment of around $ 500 million within a period of 90 days from the time of signing the agreement, ConocoPhillips said in a statement.

The remaining amount is to be paid quarterly over a period of 4-1/2 years, Conoco said.

Conoco’s assets in Venezuela were expropriated in 2007 following Venezuela’s nationalization drive. The world’s largest independent oil and gas producer left Venezuela after it could not reach a deal to convert its projects into joint ventures controlled by PDVSA [PDVSA.UL].

ConocoPhillips said it has agreed to suspend its legal enforcement of the arbitration award following its settlement with PDVSA.

Reporting by Nivedita Bhattacharjee; Editing by Anil D’Silva and Saumyadeb Chakrabarty

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