OPIC was a partner with ConocoPhillips in the Gulf of Paria Corocoro project to produce oil and gas. In the big wave of nationalizations of Faja del Orinoco projects in 2007, ConocoPhillips ended up leaving Venezuela without an agreement with PDVSA. OPIC also ended up giving up its minority stakes to PDVSA. Like Conoco, OPIC went to international arbitration. But in this case, it appears PDVSA is saying that OPIC as a Panama corporation wasn’t protected by any bilateral investment treaty. PDVSA also says that it’s the fifth straight win for Venezuela in international arbitration, which could be a bit of an exaggeration but it certainly does seem that companies are waiting a long time for little money.
Also noting that according to this page, there is also an ICC arbitration in process with OPIC, so this may not be the end of the story. And we have to wait to see the decision itself and know if PDVSA really won it all. Will be interesting.
(Update: The annoyingly dependable Venezuelan-British attorney and legal consultant Carlos Bellorín tweets, “It’s true.”)
Full statement from PDVSA, in Spanish, below the jump.