Trinidad Court Upholds ConocoPhillips Claims Against Venezuela

Trinidad and Tobago's High Court reaffirmed a decision recognizing ConocoPhillips' arbitration claim against Venezuela. This could freeze payments to Venezuela for joint natural gas projects. The court's original decision in May allows ConocoPhillips to enforce a $1.33 billion claim. Venezuela and PDVSA did not respond by the court deadline.

Trinidad and Tobago's High Court on Thursday reaffirmed a ruling that recognizes U.S. oil producer ConocoPhillips' $1.33 billion arbitration claim against Venezuela. This ruling could potentially freeze the Caribbean nation's payments to Venezuela for joint natural gas projects.

Judge Frank Seepersad noted that Venezuela's state-owned company PDVSA did not respond to the court by the deadline to present its arguments. Earlier this month, Venezuela's embassy in Trinidad acknowledged receipt of the court order.

ConocoPhillips' enforcement move in Trinidad follows a $700 million payment from PDVSA that stopped in late 2019. The U.S. federal court places ConocoPhillips among the top creditors pursuing proceeds from an auction of PDVSA subsidiary PDV Holding's shares. Efforts to develop offshore gas fields shared by Venezuela and Trinidad continue with energy giants like Shell and BP participating.

(With inputs from agencies.)