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Venezuela is facing more than 20 international arbitrations

Venezuela is facing more than 20 international arbitrations

Posted by Dubraswka Aguilar on September 25, 2014

Venezuela faces nearly 30 international arbitration before the International Centre for Settlement of Investment Disputes (ICSID), of the World Bank, triggered after a wave of nationalizations carried out by the late President Hugo Chavez during his 14 years in power. In 2012, Chavez officially requested to leave the ICSID, based in Washington, however, this does not relieve the country enforces orders issued by the court in previous cases.

Below there is a list of major cases, not including arbitrations in other courts:

ConocoPhillips: is the most expensive arbitration Venezuela faces, with an aspiration compensation of 31,000 million for the nationalization of two projects in the Orinoco and two exploration agreements in the East. A partial decision last year determined that Venezuela did not act in good faith to adequately compensate three major ConocoPhillips oil assets. A final decision is expected soon.

Exxon Mobil: In 2012, a ruling by the International Chamber of Commerce (ICC) ordered state Petroleos de Venezuela (PDVSA) to pay 907,580,000 dollars to Exxon by the abrupt completion of a contract for oil exploration in the Orinoco Belt in 2007. Venezuela saw the ruling as a victory, but the proceedings before the ICSID, where oil demand is 10,000 million dollars, is still pending.

Cemex And Holcim: Between 2008 and 2009, after the Mexican Cemex and Switzerland's Holcim did not achieve agreements with Venezuela, requested arbitration before the ICSID for expropriation of the cement industry. Their claims involve about 2,000 million together. Although Holcim and Venezuela said they reached an amicable settlement, the case has not been removed from the court. In December 2011, Cemex said Venezuela paid $ 600 million for the nationalization of its assets.

GOLD Reserve: In 2009 the Canadian mining arbitration was requested the revocation of two gold mining projects. This week, the ICSID ruled that Venezuela must pay mine $ 740 million in compensation. One of the last miners vented litigation corresponds to Canada's Crystallex, which asked 3,800 million for the Las Cristinas gold project.

Anglo American: The miner Anglo American, based in London, sued Venezuela earlier this year by the cancellation of a concession. Anglo American, one of the world's biggest mining, was owned 91.4 percent of the Loma nickel mine in Venezuela until 2012 when the Chavez government had canceled 13 concessions and refused to renew other three.

Rusoro: In 2012 the Russian-Canadian miner Rusoro requested arbitration before the ICSID because did not reach agreement with the Government for the nationalization of its assets. The company, listed on the Toronto Stock Exchange, is seeking to receive about 3,000 million dollars in compensation.

Tidewater: After waiting for months to Venezuela to compensate 76 oilfield service companies expropriated in May 2009, the Tidewater States requested arbitration to recover the value of their vessels, estimated at about 45 million. 

Universal Compression Holdings: The company, acquired by the American Exterran, was another affected by the expropriations of 2009. It introduced arbitration in 2010 for its assets valued at $ 400 million.

OPIC Karimun: Introduced in 2010 by a subsidiary of Taiwanese state CPC Corp, which had a minority stake in oil projects Gulf of Paria East and West.

Owens-Illinois: The American manufacturer of glass containers requested arbitration in September 2011 for the expropriation of its two plants in Venezuela, representing 5 percent of its global operations.

Earlier, U.S. Koch Industries introduced a similar case before the ICSID by Fertinitro, a joint venture for the production of fertilizers shared with state Pequiven and Italy's Saipem SpA, a subsidiary of Eni.

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