Conoco says Venezuela will pay $2 billion arbitration award

CARACAS, Venezuela – 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 per cent of cast-strapped Venezuela*s foreign currency reserves.