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ConocoPhillips (COP) Pursues Arbitration Claim Against Venezuela
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ConocoPhillips (COP - Free Report) , a U.S.-based exploration and production company, has received the support of the High Court of Trinidad and Tobago regarding an arbitration claim worth $1.3 billion against Venezuela over its expropriated assets. The claim was originally made in late May 2024. The Trinidad and Tobago High Court has upheld its previous decision, which may potentially freeze the country’s payments to Venezuela over joint natural gas projects.
The court ruling allows ConocoPhillips to enforce a $1.33 billion claim for compensation related to Venezuela’s expropriation of its oil assets. The ruling also allows COP to confiscate any compensation that Venezuela may receive from joint energy projects.
The Venezuelan embassy in Port of Spain, the capital of Trinidad, acknowledged that it has received the court’s order. However, Venezuela and the state-owned energy company PDVSA did not meet the court’s deadline to present an argument.
ConocoPhillips received $700 million from the Venezuelan oil firm over a settlement agreement. However, the PDVSA stopped making the requisite payments in 2019. Since then, ConocoPhillips has been actively trying to enforce arbitration rulings against Venezuela across various Caribbean nations in a pursuit to recover losses from the country’s nationalization of foreign-owned assets.
COP is one of the companies in the list of creditors seeking to obtain proceeds by selling off their shares in PDVSA's subsidiary, PDV Holding. The Houston-based refiner, Citgo, is the sole asset of PDV Holding.
Venezuela and Trinidad, along with energy companies NGC, Shell and BP, are planning to develop major offshore gas fields (shared by the countries) and those on the Venezuelan side of the maritime border. ConocoPhillips informed the court that, as part of these projects' negotiations, Trinidadian stakeholders are expected to pay PDVSA and Venezuela in bonds to access the gas reserves.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Hess is a leading upstream energy company with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. Hess is currently in the process of being acquired by energy supermajor Chevron in an all-stock deal that will result in the creation of an energy behemoth with a massive portfolio of producing assets.
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ConocoPhillips (COP) Pursues Arbitration Claim Against Venezuela
ConocoPhillips (COP - Free Report) , a U.S.-based exploration and production company, has received the support of the High Court of Trinidad and Tobago regarding an arbitration claim worth $1.3 billion against Venezuela over its expropriated assets. The claim was originally made in late May 2024. The Trinidad and Tobago High Court has upheld its previous decision, which may potentially freeze the country’s payments to Venezuela over joint natural gas projects.
The court ruling allows ConocoPhillips to enforce a $1.33 billion claim for compensation related to Venezuela’s expropriation of its oil assets. The ruling also allows COP to confiscate any compensation that Venezuela may receive from joint energy projects.
The Venezuelan embassy in Port of Spain, the capital of Trinidad, acknowledged that it has received the court’s order. However, Venezuela and the state-owned energy company PDVSA did not meet the court’s deadline to present an argument.
ConocoPhillips received $700 million from the Venezuelan oil firm over a settlement agreement. However, the PDVSA stopped making the requisite payments in 2019. Since then, ConocoPhillips has been actively trying to enforce arbitration rulings against Venezuela across various Caribbean nations in a pursuit to recover losses from the country’s nationalization of foreign-owned assets.
COP is one of the companies in the list of creditors seeking to obtain proceeds by selling off their shares in PDVSA's subsidiary, PDV Holding. The Houston-based refiner, Citgo, is the sole asset of PDV Holding.
Venezuela and Trinidad, along with energy companies NGC, Shell and BP, are planning to develop major offshore gas fields (shared by the countries) and those on the Venezuelan side of the maritime border. ConocoPhillips informed the court that, as part of these projects' negotiations, Trinidadian stakeholders are expected to pay PDVSA and Venezuela in bonds to access the gas reserves.
Zacks Rank and Key Picks
Currently, COP carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , Sunoco LP (SUN - Free Report) and Hess Corporation (HES - Free Report) . SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, while Hess Corporation carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Hess is a leading upstream energy company with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. Hess is currently in the process of being acquired by energy supermajor Chevron in an all-stock deal that will result in the creation of an energy behemoth with a massive portfolio of producing assets.