Venezuela loses appeal of $8.5bn ConocoPhillips award

Spanish Market: Crude oil
23/01/25

An international arbitration court has rejected Venezuela's appeal of an $8.5bn award given to ConocoPhillips related to Venezuela's expropriation of its crude assets in 2007.

The World Bank's International Centre for the Settlement of Investment Disputes (Icsid) dismissed Venezuela's appeal, which was based on multiple arguments over the costs awarded.

Icsid also ordered Venezuela to pay $6.46mn in ConocoPhillip's legal fees and $1.35mn in other court costs for the proceedings.

"The decision upholds the principle that governments cannot unlawfully expropriate private investments without paying compensation," ConocoPhillips said of the ruling.

Venezuela's latest appeal with Icsid came after a US federal court in 2022 cleared ConocoPhillips to try to collect the $8.5bn award, which has an annually compounded interest rate of 5.5pc.

Venezuela's government did not immediately respond to a request for comment.

ConocoPhillips first filed the case with Icsid after Caracas expropriated its Petrozuata and Hamaca crude upgrading assets and its offshore Corocor light to medium-grade crude production project as part of deceased former-president Hugo Chavez's nationalistic energy drive.

But collection will still be difficult given that there are multiple claims in international courts totaling more than $60bn against Venezuela, which has dwindling international assets in the face of sanctions against the government of President Nicolas Maduro.

A process to sell US refiner Citgo, Venezuela's main foreign oil asset, to satisfy some of these creditors has faced multiple delays.

By Carla Bass

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

30/04/25

US economy contracts in 1Q on pre-tariff stocking

Houston, 30 April (Argus) — The US economy contracted in the first quarter for the first time in three years, on less government spending and a surge in imports as companies stocked up on inventories before tariffs take effect. Gross domestic product (GDP) contracted at an annual 0.3pc pace following growth of 2.4pc in the fourth quarter, the Bureau of Economic Analysis said today. GDP last fell by 1pc in the first quarter of 2022. Economists surveyed by Trading Economics had forecast 0.3pc GDP growth for the first quarter. Businesses stocked up on imports to get ahead of tariffs that President Donald Trump has wielded to restructure the global trading system. A monthly employment report in two days may show the impacts of Trump's mass federal firings, while Federal Reserve policymakers will meet next week to consider the effects of Trump's policies on prices. Imports, which detract from GDP growth, expanded by 41.3pc after falling by 1.9pc in the fourth quarter. Exports grew by 1.8pc after declining by 0.2pc. Consumer spending rose by an annual 1.8pc in the first quarter following 4pc growth in the fourth quarter. Domestic investment, which includes inventory builds, rose by an annual 21.9pc following a decline of 5.6pc in the prior quarter. Spending on equipment rose by 22.5pc following an 8.7pc decline in the fourth quarter. Government spending fell by 1.4pc after growth of 3.1pc. Federal spending fell by 5.1pc after growth of 4pc. Defense spending was down by an annual 8pc. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Repsol sees Spanish refineries back to normal in a week

30/04/25

Repsol sees Spanish refineries back to normal in a week

Madrid, 30 April (Argus) — Repsol said it expects its five Spanish refineries to return to normal operations within a week following Monday's nationwide power outage. The company confirmed that power was restored to all its refineries on Monday evening, allowing the restart process to begin. It will take three days to restart the crude distillation units and 5-7 days to restart the secondary conversion units, with hydrocrackers taking the longest, according to chief executive Josu Jon Imaz. A momentary and as-yet unexplained drop in power supply on the Spanish electricity grid caused power cuts across most of Spain and Portugal, disrupting petrochemical plants and airports, as well as refineries. Imaz noted that Repsol was fortunate that its refineries avoided damage from petroleum coke formation and other solidification processes during the shutdown. Repsol's 220,000 b/d Petronor refinery in Bilbao was the first to restart, thanks to electricity imports from France, he said. State-controlled petroleum reserves corporation Cores has temporarily reduced Spain's obligation to hold 92 days of oil product consumption as strategic reserves by four days, mitigating potential supply issues from the outage. Imaz declined to speculate on the cause of the power outage. By Jonathan Gleave Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump tweaks tariff burden on US automakers

29/04/25

Trump tweaks tariff burden on US automakers

Washington, 29 April (Argus) — President Donald Trump's administration has offered to offset the 25pc tariff on foreign-made auto parts, scheduled to start on 3 May, and to exempt auto parts from any additional tariffs they face from other import taxes imposed in recent months. Trump, who today announced the change in tariffs ahead of a political rally in Michigan, a key US car manufacturing state, cast his decision in terms of giving US automakers a reprieve from his tariff policies. But as in other cases when he changed his mind on tariffs, the US auto industry will still face a substantial burden from import taxes imposed since Trump took office. Trump's 25pc tariffs on foreign cars went into effect on 3 April, and a 25pc tariff on imported auto parts was scheduled to go into effect on 3 May. Under an executive order Trump signed today, the auto makers can be partially refunded the cost of the tariffs on imported auto parts, subject to a cap of 15pc of the value of an assembled car until April 2026, dropping to a 10pc cap until April 2027. The refund cannot exceed 3.75pc of a car's manufacturer suggested retail price in the first year, dropping to 2.5pc in the second year. The idea behind the adjustment is to force US automakers to become wholly reliant on auto parts made in the US in the next two years, commerce secretary Howard Lutnick explained. In theory, at least, a US-made car that is made with 85pc domestic components would not face an additional tariff cost. A separate executive order clarifies that the tariffs on foreign-made cars and auto parts will not be calculated in addition to any other tariffs Trump has imposed on Canada and Mexico, and will not be counted on top of tariffs imposed on steel, aluminum and their derivative products. "This is just a little transition," Trump told reporters at the White House today, announcing the latest reversal of his tariff policy. "We're just giving them a little chance, because in some cases, they can't get the parts fast enough." By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada’s Liberals win minority government

29/04/25

Canada’s Liberals win minority government

Calgary, 29 April (Argus) — Canadian prime minister Mark Carney and his Liberal party rode a wave of anti-US sentiment to victory in Monday's election, but fell just short of an elusive majority. The Liberals are on track to take 168 of the 343 seats in Parliament, according to Elections Canada, which said counting has carried over to today on account of a large voter turnout. If current levels hold, this will mark a six seat improvement for the Liberals over the 2021 election, but they will still require the support of other parties to pass legislation, as they did prior to the election. The Conservatives will form the official opposition with an estimated 144 seats. Despite the loss, the Conservatives made the largest gain of any party compared to the 2021 election, when they won 119 seats. Who will lead the Conservatives in Parliament is unclear, however, with current leader Pierre Poilievre losing his Ottawa seat to a Liberal candidate and being on the outside looking in for the first time in 20 years. Carney won his neighbouring seat handily, with the results indicative of which leader Canadians preferred to take on US president Donald Trump. The election was largely centered around trade and the economy which was brought to the forefront by Trump's tariffs and "51st state" rhetoric, turning the election into a two-horse race between the parties with the most realistic chances of forming a government. "President Trump is trying to break us so that America can own us. That will never, ever happen," said Carney in his victory speech. "We are over the shock of the American betrayal, but we should never forget the lessons." Carney plans to sit with Trump to discuss the trade relationship between the two countries, but says Canada has "many, many other options" than the US to build prosperity. The Liberals garnered about 43.5pc of the popular vote while the Conservatives hit 41.4pc, according to preliminary results, each representing the highest for their respective parties since the 1980s. Liberal and Conservative gains came at the expense of the smaller New Democratic Party (NDP) and Bloq Quebecois who may still hold influence in government despite suffering steep losses. The NDP are likely to end with seven seats, down from 25 in the 2021 election and below the 12 required for official party status in Parliament. The Bloq Quebecois, a regional party standing for sovereignty in Quebec, fell to 23 seats from 32 across the same time frame. The Liberals were propped up by the NDP since 2022 and may turn to the left-leaning party yet again to push legislation through. The NDP, nearly being wiped out, could hold the balance of power yet again but they will need to regroup after its leader also lost his seat. Carney admits Canada must build more infrastructure to both kickstart a lagging economy but also diversify its trade partners further beyond the US. The Conservatives agree more must be done and it is likely common ground could be found between the two parties to progress the export of energy, critical minerals and more. "We are going to build," said Carney. "Build, baby, build." By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

N Sea benchmark crude loadings at 20-year low in June

29/04/25

N Sea benchmark crude loadings at 20-year low in June

London, 29 April (Argus) — Combined loadings of the five local North Sea benchmark grades Brent, Forties, Oseberg, Ekofisk and Troll will drop to 350,000 b/d in June, the lowest in at least 20 years. Only one cargo of Ekofisk is planned for June, to load in the last days of the month. This is the lowest on Argus ' records going back more than 15 years. The number of the only June cargo suggests that one shipment was added to the May programme, but this was not confirmed. The drop in Ekofisk exports is a result of maintenance. ConocoPhillips will shut down the fields it operates in the Ekofisk area and the Nordpipe system for maintenance in June, the company previously told Argus . The planned shutdown will last around four weeks. The company did not specify by how much exports would be reduced. ConocoPhillips operates the Ekofisk and the Eldfisk fields in the Ekofisk area, which produced around 100,000 b/d of crude last year. Loadings of Brent will be largely steady at 23,000 b/d, or one cargo. Both Norwegian-produced Oseberg and Troll will have one fewer cargo in June, with two and three, respectively. Forties is the only grade of which exports will increase in June to 187,000 b/d across eight cargoes, up by 18pc, or one shipment, from May. Forties production will drop to a four-year low during maintenance in August . Such low availability of just one cargo of benchmark crude loading every other day can support the price of North Sea Dated in May. The sixth benchmark grade US WTI, added to the basket in mid-2023, offers much higher liquidity, with around 1.4mn b/d delivered to Europe so far this year — or roughly two cargoes a day. But local grades have been setting Dated as the cheapest option 84pc of the time this year so far, and tighter supply in June could support the benchmark's price. By Lina Bulyk Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more