ConocoPhillips ICSID Award: The $8.5 Billion Claim

ConocoPhillips holds one of the largest claims against Venezuela—an $8.5 billion ICSID arbitration award arising from the expropriation of its oil assets in 2007.

The Expropriation

In 2007, the Chavez government nationalized ConocoPhillips' interests in the Petrozuata, Hamaca, and Corocoro oil projects in the Orinoco Belt. These were major heavy oil production ventures that ConocoPhillips had developed through joint ventures with PDVSA.

The ICSID Proceedings

ConocoPhillips filed claims under the Netherlands-Venezuela Bilateral Investment Treaty. The International Centre for Settlement of Investment Disputes (ICSID) proceeding took over a decade:

2013: Tribunal finds Venezuela breached its treaty obligations

2017: Damages phase completed

2019: Final award of $8.5 billion issued

Position in the Waterfall

ConocoPhillips holds multiple positions in the Delaware court creditor priority ranking:

Position #3: Petrozuata/Hamaca judgment (Phillips Petroleum Company Venezuela Limited and ConocoPhillips Petrozuata B.V.)

Position #8: Corocoro judgment (ConocoPhillips Gulf of Paria B.V.)

Position #14: ICSID judgment (ConocoPhillips Petrozuata B.V., ConocoPhillips Hamaca B.V., and ConocoPhillips Gulf of Paria B.V.)

The different positions reflect separate legal entities and judgment dates.

Collection Efforts

ConocoPhillips has pursued multiple enforcement strategies:

Participation in the Citgo sale process

Attachment of Venezuelan assets in other jurisdictions

Direct negotiations with Venezuelan authorities

The company settled with PDVSA for approximately $2 billion in 2018 for the Petrozuata and Hamaca claims, but continues pursuing the remaining amounts.

Significance for Other Creditors

The ConocoPhillips case demonstrates that major international companies will pursue expropriation claims through arbitration and US court enforcement. Its priority position means it will receive significant proceeds from the Citgo sale before junior creditors.