In the year-long conflict with the US company ConocoPhillips to nationalized oil Fields is dependent Venezuela has been a high compensation payment. The court of arbitration of the world Bank’s ICSID to the language of the Oil company at 8.7 billion US dollars (7.7 billion euros). The US group had demanded a much higher compensation.
Venezuela may challenge the decision. It is also unclear whether or not the crisis-ridden country, the battle is in the midst of a political power, the descendants of the payment. How and when the compensation was to receive, had yet to be clarified, shared with ConocoPhillips. The Venezuelan government has not commented so far to the judgment. ConocoPhillips praised the decision. They show that a government may not expropriate illegally and without compensation to private ownership.
The then head of state Hugo Chavez had nationalized the Oil industry in 2007, and foreign companies are forced to transfer at least 60 percent of their business to the state-owned company PDVSA. ConocoPhillips retreated from Venezuela. The world Bank Tribunal had assessed the action in 2013 as unlawful expropriation.
Venezuela is one of the largest oil exporters in South America. Through mismanagement, the US sanctions and lack of investment, production has fallen to its lowest level in nearly 70 years. The decline in oil Exports have plunged the Opec country into a deep economic crisis. More than three million people have left Venezuela.
The remaining population suffers from a high Inflation as well as to food and medication shortages. For weeks, Venezuelan President Nicolás Maduro and the self-appointed interim President, Juan Guaidó are engaged in a struggle for Power in the country.
