Venezuela Loses Bid for High Court Interference

The Supreme Court refused to let Venezuela block allegations that its seizure of oil-drilling facilities owned by U.S. companies violated international law.  Venezuelan oil companies and the local subsidiaries of U.S. energy firms had enjoyed decades of cooperation before the government of former president Hugo Chavez announced in June 2010 that it nationalized the U.S. oil rigs to increase oil and gas production and open jobs for Venezuelans. The move led Petroleos de Venezuela and the Venezuelan National Guard to blockade facilities owned by Oklahoma-based Helmerich & Payne International Drilling Co. and its in-country subsidiary, Helmerich & Payne De Venezuela C.A.  Citing the Foreign Sovereign Immunities Act, Helmerich & Payne and its subsidiary filed a federal complaint in Washington against the Venezuelan government, alleging that the seizure of its rigs constituted a taking of property in violation of international law. The lawsuit also accuses PDVSA of breach of contract. More…