THE Supreme Court has approved a receiver to go after US energy giant ConocoPhillips’ enforcement of a US$1.33 billion ($8.97 billion) claim against Venezuela's state-owned oil companies for past expropriations, including payments stemming from the Dragon gas deal.
On September 27, Justice Frank Seepersad appointed Anthony Pierre, of Moore Business Solutions TT, as interim receiver over Petróleos De Venezuela, SA (PDVSA) assets in TT. Pierre would be expected to provide periodic reports to the court on his progress.
According to the receivership order, these assets include “any compensation (or other monies) payable to PDVSA for relinquishing its right in respect of the Dragon Gas Field and for the infrastructure it owns; any right accrued to PDVSA to be paid consideration, now or in the future, by the TT government or any of its departments, the National Gas Company (NGC), and/or any of its subsidiary companies and/ or any of their respective bankers under any agreement for the supply and purchase of gas extracted from the Dragon Gas Field.”
ConocoPhillips’ application was filed on September 25, in the name of its two subsidiaries Phillips Petroleum Company Venezuela Ltd (PPCVL) and Phillips Petrozuata BV against PDVSA and its two subsidiaries Corpoguanipa SA and PDVSA Petroleo SA.
Seepersad said his decision was made as there is a risk that PDVSA will move assets from TT's jurisdiction to avoid paying ConocoPhillips.
The September 27 decision followed ConocoPhillips’ previous application for the enforcement and recognition of the Petrozuata arbitration judgment in TT.
On May 27, Seepersad gave ConocoPhillips the green light to enforce its US$1.33 billion arbitration award in Trinidad if it could establish there were assets held by the Venezuelans or money owed to them (PDVSA) by entities in TT.
The decision gave the US oil company the right to seize any compensation to Venezuela from joint gas projects with Trinidad. His order was varied to amend the method of delivery of service and the Venezuelan companies were given until July 17, to apply to set aside the order. However, that deadline passed with no attempt made by PDVSA and its two subsidiaries to do so.
In June, Energy Minister Stuart Young rubbished claims that the court’s recognition of the Petrozuata award would affect the 30-year-exploration and production license for the Dragon gas field.
He said the government secured a 30-year license for the Dragon gas field as well as a specific amended OFAC license from the US, to develop Dragon and produce and export gas from the field to TT. Venezuela and Trinidad, along with energy companies TT’s National Gas Company (NGC and Shell are looking to develop major offshore gas fields shared by the countries and on the Venezuelan side of the maritime border.
Young also referred to an announcement in late May that the Government was granted another OFAC license to develop the Manakin-Cocuina hydrocarbon field. That license is due to expire in May 2026.
Seepersad said the modality of payment un
