Venezuela Loses Bid to Annul $8.5B ConocoPhillips Arbitration Award

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A ConocoPhillips spokesperson welcomed the decision, emphasizing its significance in upholding the principle that governments cannot unlawfully expropriate private investments without compensation.

Venezuela’s Criticism of the ICSID System

Venezuela’s counsel, George Kahale III of Curtis Mallet-Prevost Colt & Mosle LLP, criticized the decision, calling the arbitration process an embarrassment. “The annulment decision confirms that the system lacks the necessary checks and balances that are the hallmark of a serious and mature legal system,” Kahale said.

Venezuela had previously challenged the impartiality of several tribunal and committee members, including accusations of misconduct involving arbitrator Kap-You “Kevin” Kim. These challenges were dismissed, with former Canadian Supreme Court Justice Ian Binnie finding no evidence to support Venezuela’s claims.

Enforcement of the Award

ConocoPhillips has already secured approval from a U.S. federal court in Washington, D.C., to enforce the award. The court ruled in 2022 that Venezuela’s chances of success in the annulment proceeding were minimal, clearing the way for asset seizures to recover the debt.