The World Bank arbitration court has awarded Exxon Mobil $77 million in a resubmitted claim over the nationalization of Venezuela’s Cerro Negro and La Ceiba crude projects. The original claim was worth $1.4 billion.
This decision is the culmination of a lengthy legal battle that concluded on July 10, when the International Centre for Settlement of International Disputes (ICSID) determined that most of the compensation previously granted to Exxon had already been paid in a separate claim with the International Chamber of Commerce. In 2011, Exxon received $907.5 million through this earlier claim.
However, in order to receive the full amount of $1.4 billion sought by Exxon, the company must return what it received in the previous claim. As per the award document, this would result in $76.9 million being awarded to Exxon, along with approximately $1 million to cover some of their legal expenses.
The details of the award are not public since both parties must consent for it to be published, according to an ICSID press official. Exxon has indicated that it will not comment on the specifics of the award but stated that “on balance, ICSID ruled in our favor,” according to company spokesperson Todd Spitler.
Venezuela’s information ministry has not yet responded to requests for comment on the matter.
Previously, the ICSID had challenged the amount of compensation initially awarded to Exxon in 2017, partially annulling a previous ruling that had required Venezuela to pay $1.4 billion. The court cited the improper calculation of compensation as one of the issues.
Exxon was the first foreign oil company to leave Venezuela after the nationalization of oil assets ten years ago under the late President Hugo Chavez. ConocoPhillips, which also filed for arbitration over the seizure of its Hamaca and Petrozuata assets in 2007, may also receive a portion of the proceeds. The company is among the top creditors scheduled to be paid once shares in Citgo Petroleum’s parent company are sold at auction in October.
