ConocoPhillips Settles With Venezuela’s PDVSA To Recover $2 Billion

U.S. producer ConocoPhillips on Aug. 20 said Venezuela’s PDVSA agreed to pay $2 billion to settle an arbitration award, suspending a dispute that blocked the state-run oil firm from exporting crude from most of its key Caribbean facilities.

Venezuela’s crude production, a major source of revenue, has fallen to a six-decade low this year as lack of cash for investment, recession and hyperinflation pushed the OPEC-member country’s economy to near collapse. The agreement could restore at least some of its exports by resuming shipping from Caribbean terminals.

Conoco will suspend legal enforcement of the arbitration award as long as the payments continue, spokesman Daren Beaudo said. He declined to say if the payments would be made in cash or crude oil, adding details of the agreement are confidential.

PDVSA confirmed a settlement was reached, but did not immediately elaborate on the payment terms.