CARACAS, Venezuela (AP) — U.S. oil giant ConocoPhillips says it has reached an agreement with Venezuela’s state-owned oil company to recover nearly $2 billion it was awarded as part of a decade-old expropriation dispute.
Monday’s statement from Houston-based Conoco says that PDVSA has agreed to recognize the judgement by an international arbitration panel and will make the first $500 million payment within 90 days and the rest over a period of some four years.
In exchange, Conoco will suspend legal actions to seize PDVSA’s facilities in the Dutch Antilles that had threatened to disrupt Venezuela*s already-depressed oil exports at a time of widespread shortages and hyperinflation.
PDVSA hasn’t commented comment.
The award is equivalent to more than 20 percent of cast-strapped Venezuela*s foreign currency reserves.