Nationally run oil in Venezuela has come under heavy seizure this week with the recent ruling. According to CNBC, a court in Curacao has authorised the seizing of $636 million in assets. The ruling comes as part of a larger-scale arbitration award which is making its way across the Caribbean.
Currently, the arbitration award is valued at over $2 billion, including companies affected by nationalisation. This latter case is specific to Venezuela’s nationalisation of American companies in 2007, of which ConocoPhillips was affected. According to the local news sources, Curacao are able to attach “oil or oil products on ships and on bank deposits.”
Conoco Seizure of PDVSA Assets
It’s recently reported that Venezuela’s PDVSA is preparing to shut down oil refineries as a result. The facility is a known producer of up to 335,000 barrels a day, now coming under threat due to the ruling. This ruling has the potential to allow Conoco to seize assets which contribute to the value of $636 million taken in cash or kind.