Latin American oil companies reject judgment in favor of ConocoPhillips

Latin American oil companies reject judgment in favor of ConocoPhillips

The Association of Latin American Oil, Gas and Energy Entrepreneurs, based in the United States, rejected the decision made by the Washington State Court, by which it favored the oil company ConocoPhillips for it to execute an arbitration award for up to 8.7 billion dollars.

Alejandro Terán Martínez, president of the aforementioned Association told Last News that this decision of the Court represents “a bad precedent for Venezuela and for the oil balance worldwide.”

Terán Martínez recalled that what happened two days ago in the Washington State Court dates back to 1997 when PDVSA, headed at that time by Luis Guisti, launched the so-called Petroleum Opening, which allowed companies like ConocoPhillips and others to enter the crude oil business in Venezuela. “The royalty at that time was 1% and the tax was a scant 14%,” said Terán Martínez.

But when Hugo Chávez came to power, a barrel of oil reached 150 dollars and it was necessary to review the relations between PDVSA, ConocoPhillips and Texaco, explained the analyst.

“All the oil companies agreed to review the clauses to increase the royalties in favor of Venezuela, but ConocoPhillips and Texaco did not. And that is how those companies went to claim an exaggerated amount of money through the arbitration system under the parameters of the World Bank,” explained Terán Martínez.

“They did not agree with the new terms of the contract where President Chavez increased taxes from 16% to 34% and royalties from 1% to 16%,” explained the oil expert.

oil balance

Terán Martínez indicated that it was not fair for Venezuela, “whose government managed to bring a barrel of oil to 150 dollars, for foreign companies to capitalize on all the benefits of that bonanza.”

“The Association is struck by the way in which this Washington State Court does things to the detriment of the world oil balance,” he said.

The analyst clarified that such a decision will affect Citgo, which is the guarantor of Venezuela’s goods in the United States and, because of this, the resources to pay ConocoPhillips would come out of its cash flow.

“It is a very worrying issue, taking into account that Citgo is still controlled by what they call the ‘interim government’ and it was the piñata from which they got the candy to support that deceitful structure led by Guaidó,” he specified.

The president of the Association said that this “Twitter ambassador” named Carlos Vechio “has no interest in defending the interests of Venezuela and that is why they did not present themselves as victims, being the ones recognized by the United States to do so, in that trial, leaving that the Court decide in favor of the oil company.”

This process filed by the two oil companies has been going on for around 10 years, in which Venezuela defended itself both in the government of then President Chávez and in that of the current Head of State, Nicolás Maduro, the analyst pointed out.

“But as of 2019, the Venezuelan state was left totally defenseless because the United States government recognized a deputy who proclaimed himself president of the country,” Terán Martínez said.

“It is all a structured conspiracy of that opposition group whose leader is Guaidó, to steal the resources of Venezuela… we did not lose that trial for lack of arguments, but because they did not give the legitimate Venezuelan government a chance to argue,” he concluded.

Source link

Previous Story

The discharge of the Vice President and the repercussions within the ruling party and the opposition

Next Story

FA senators asked that Heber and Bustillo “step aside”

Latest from Venezuela