Published On: Fri, Oct 26th, 2018

ConocoPhillips gets $345 million in cash and commodities from Venezuela’s PDVSA

ConocoPhilips-OfficesHOUSTON - U.S. oil producer ConocoPhillips on Thursday said it received $345 million in cash and commodities last quarter from Venezuelan state oil firm PDVSA under a settlement that came after Conoco seized some of PDVSA’s assets in the Caribbean.

The proceeds were part of a first installment under a deal to satisfy a $2 billion arbitration award Conoco won earlier this year over broken oil contracts in the South American country.

The payment, disclosed with the company’s third-quarter earnings, came months after Conoco went to local courts and obtained the right to seize most of Petroleos de Venezuela’s Caribbean inventories, logistics and storage assets to enforce an April arbitration award.

PDVSA did not respond to a request for comment.

The state oil company is facing payments in coming days on bonds maturing in 2020. PDVSA used Citgo Petroleum, its U.S. refining unit, as 51 percent collateral on the 2020 bond.

Conoco in August suspended its legal seizures of PDVSA assets on the islands of Aruba, Bonaire, Curaçao, and St Eustatius after PDVSA agreed to make an initial, $500 million payment within 90 days.

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