U.S. oil producer ConocoPhillips (NYSE: COP) is still awaiting payment from Venezuela on a $2 billion arbitration settlement reached last month with the country’s state-run PDVSA, CEO Ryan Lance said on Sept. 5.
In August, Conoco suspended legal attachments efforts that had cut Venezuela’s oil exports from several Caribbean facilities following a deal that allowed the country 90 days to make an initial $500 million payment.
“I’ll count the money when it shows up in the bank,” Lance said on Sept. 5 at a Barclays energy conference in New York, in response to a question on how the company plans to use the settlement.
Lance said he expects Venezuela will honor the agreement, noting the company still has another two arbitration decisions involving Venezuela ahead of it. But Conoco would resume its legal efforts if the payments were not forthcoming, he said.
The deal stems from the nationalization of Conoco assets dating back over a decade in Venezuela. An international court in April ruled in favor of Conoco and ordered PDVSA to pay the $2 billion. Conoco began seizing PDVSA’s Caribbean assets earlier this year to enforce its claim. Conoco’s seizures in Aruba, Bonaire, Curacao and St. Eustatius had prevented PDVSA from using several terminals and export operations. Under terms of the agreement, Venezuela must pay $500 million by late November and the remaining $1.5 billion over the next four and a half years.
Recommended Reading
ONGC’s M Field Starts Production in Bay of Bengal
2024-01-09 - ONGC’s M Field represents the second phase of the larger 98/2 Block development project which is expected to reach peak production of 45,000 bbl/d and 10 MMcm/d.
US Drillers Cut Oil, Gas Rigs for Second Week in a Row
2024-01-12 - The oil and gas rig count, an early indicator of future output, fell by two to 619 in the week to Jan. 12, the lowest since November.
US Drillers Cut Oil, Gas Rigs for Third Week in a Row
2024-01-05 - The oil and gas rig count, an early indicator of future output, fell by one to 621 in the week to Jan. 5.
Prairie Operating Acquires More D-J Basin Assets for $94.5MM
2024-01-15 - Houston-based Prairie Operating Co. is scaling its D-J Basin footprint with a $94.5 million acquisition of Nickel Road Operating LLC.
Trio Petroleum to Restart McCool Ranch Oilfield
2024-01-07 - California’s Trio Petroleum plans to restart oilfield production at McCool Ranch, where six wells that previously reached a production peak of 400 bbl/d.