The ICSID Arbitral Tribunal issued a partial ruling in the dispute between ConocoPhillips and Venezuela regarding the latter's 2007 taking of ConocoPhillips oil assets located in the country. ConocoPhillips submitted the dispute to ICSID in 2007 pursuant to Article 36 of the ICSID Convention, basing its claims on the Venezuelan Law on the Promotion and Protection of Investments and the 1991 Agreement on Encouragement and Reciprocal Protection of Investments between the Kingdom of the Netherlands and the Republic of Venezuela (BIT). ConocoPhillips claimed Venezuela's 2007 actions violated both Venezuelan law and the BIT, effecting an unlawful expropriation (or equivalent measures) of ConocoPhillips investments, evidencing a failure to accord those investments "fair and equitable treatment" and "full protection and security," and constituting "arbitrary and discriminatory measures impairing the use and enjoyment of its investments in Venezuela." ConocoPhillips requested that Venezuela pay damages to ConocoPhillips for its breaches of the law and BIT, as well as arbitration costs and expenses and other relief the Tribunal considers appropriate.
The Tribunal determined that under Article 9 of the BIT it had jurisdiction over most of ConocoPhillips' claims, though not as to its claim regarding the loss of future tax credits, which it dismissed accordingly. The Tribunal further found that Venezuela breached its obligation under Article 6(c) of the BIT "to negotiate in good faith for compensation for its taking of the ConocoPhillips assets. . . ." Damages, costs, and expenses of the Tribunal will be determined in an additional proceeding; ConocoPhillips has provisionally claimed that Venezuela owes over $30.3 billion, while Venezuela claims that compensation should be limited to $570.5 million.