Wednesday, October 15, 2014

Why Exxon Mobil’s win against Venezuelan government matters for US investors


The World Bank’s ICSID (International Center for Settlement of Investment Disputes) tabled the decision. ICSID facilitates arbitration and conciliation of legal disputes between international investors. According to ICSID’s judgment, the Venezuelan government will have to pay $1.4 billion to Exxon Mobil for seizing its Cerro Negro project. In addition, ICSID awards another $179 million to Exxon Mobil to compensate for the loss it incurred when the government took over its La Ceiba project.An earlier World Bank settlement also went in favor of Exxon Mobil on this issue. In 2012, $908 million was awarded to the company. The current $1.6 billion compensation judgment includes the earlier $908 million award. Following the ruling, Exxon Mobil asked a U.S district court to recognize that Venezuela “must pay $1.6 billion over a nationalization claim filed in 2007.” More…

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