ConocoPhillips Says Venezuela To Pay $2B Arbitration Award

U.S. oil giant ConocoPhillips says it has reached an agreement with Venezuela's state-owned oil company to recover nearly $2 billion it was awarded as part of a decade-old dispute.

Monday's statement from ConocoPhillips, which has offices in Bartlesville, says that PDVSA has agreed to recognize the judgment by an international arbitration panel and will make the first $500 million payment within 90 days and the rest over a period of some four years.

In exchange, ConocoPhillips will suspend legal actions to seize PDVSA's facilities in the Dutch Antilles that had threatened to disrupt Venezuela's already-depressed oil exports at a time of widespread shortages and hyperinflation.

On April 25th, the ICC tribunal awarded ConocoPhillips the money arising out of PDVSA’s failure to uphold its contractual commitments.

The award is equivalent to more than 20 percent of cash-strapped Venezuela's foreign currency reserves.

The Associated Press contributed to this report.