Cono­cophillips ‘not close’ to re­coup­ing $2b from PDVSA: CEO

The Gulf Today - Business - - INTERNATIONAL -

HOUS­TON: US oil pro­ducer Cono­cophillips is far from col­lect­ing the full value of a $2 bil­lion ar­bi­tra­tion award against Venezue­lan state oil com­pany PDVSA, Conoco’s chief ex­ec­u­tive said on Tues­day.

Conoco has won court or­ders al­low­ing the com­pany to be­gin seiz­ing PDVSA as­sets in ef­forts to col­lect on an award by the In­ter­na­tional Cham­ber of Com­merce (ICC) over the 2007 na­tion­al­iza­tion of its projects in Venezuela.

While Conoco started seiz­ing as­sets this month, Chief Ex­ec­u­tive Of­fi­cer Ryan Lance is tele­graph­ing that the com­pany in­tends to es­ca­late its cam­paign against PDVSA across the globe as it works to re­coup losses. That threat­ens to fur­ther limit rev­enue at the state-con­trolled firm, the sin­gle largest mon­ey­maker for the OPEC mem­ber.

“It’s not close to the $2 bil­lion to­day, but over time we ex­pect to be able to re­cover it,” Lance said at Conoco’s an­nual share­holder meet­ing in Hous­ton. “We’re just try­ing to look where all the as­sets are.”

Conoco has filed with courts in the United States, Hong Kong, the United King­dom and through­out the Caribbean in an at­tempt to be­gin the le­gal process of seiz­ing ad­di­tional PDVSA as­sets, Lance said.

Conoco on Tues­day moved to seize at least two car­goes of crude and fuel near a ter­mi­nal op­er­ated by PDVSA sub­sidiary Citgo Pe­tro­leum in Aruba, sources told Reuters.

In Asia, PDVSA is co-owner with Petrochina of CV Ship­ping Pte Ltd, a Sin­ga­pore-based tanker op­er­a­tor, ac­cord­ing to CV Ship­ping’s web­site. The joint ven­ture has four tankers, each ca­pa­ble of trans­port­ing 2 mil­lion barrels of oil.

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