The World Bank’s International Centre for Settlement of Investment Disputes, or ICSID, in mid-March overturned a previous ruling that had ordered Venezuela to pay U.S.-based multinational oil company ExxonMobil $1.4 billion in damages. The case is only one of more than 40 others being heard at ICSID that came largely as a result of late President Hugo Chávez’s nationalizations of the oil sector, in addition to takeovers in the electricity, telecoms, metal and agricultural sectors during his presidency. How will the ruling and similar cases infl uence foreign investment in Venezuela’s oil sector? Does the latest decision provide any meaningful relief for Venezuela’s cash crunch? What is the state of arbitration claims against Venezuela in international courts, and how big of a liability are the cases for the cash-strapped nation?
We are pleased to contribute IPD’s opinion to this week’s Latin America Energy Advisor. To read more, please download the edition here: https://ipdlatam.com/wp-content/uploads/2017/03/LEA170324.pdf