Claims by oil majors that Venezuela owes billions complicate U.S. investment push

Western oil companies including Exxon Mobil and ConocoPhillips say Venezuela owes them tens of billions of dollars for assets seized two decades ago, a dispute that could complicate President Trump’s efforts to encourage U.S. firms to produce more oil in the country after Nicolás Maduro was captured by U.S.

forces in Caracas over the weekend. ConocoPhillips’s claims total about $12 billion and Exxon Mobil has estimated roughly $20 billion in unpaid awards; European firms such as Italy’s Eni, France’s TotalEnergies and Spain’s Repsol also have claims. Chevron is the only major U.S. oil company that remained in Venezuela.

Most foreign companies left after the Chávez government in the mid-2000s demanded smaller stakes in projects without compensation, and production has since suffered from corruption, mismanagement and neglect. Companies have spent years pursuing compensation through international arbitration and U.S.

courts. Exxon has collected some awards—about $908 million related to the Cerro Negro project and $260 million for La Ceiba—while another $1.4 billion award was annulled and Exxon filed a new claim to restore it. ConocoPhillips may recover some losses through the U.S. Bankruptcy Court auction of Citgo, an American subsidiary of Venezuela’s state oil company, but many awards remain unpaid and Venezuela contests most claims, saying it owes much less or nothing.

Key Topics

Business, Exxon Mobil, Conocophillips, Venezuela, Nicolas Maduro, Chevron