Oil they can blame Venezuela before the Ciadi

In new contracts of the Carabobo block of Petroliferous Faja of the Orinoco that will subscribe the Republic with foreign partners is anticipated to exclude the figure from the arbitration. But the Venezuelan Constitution and laws allow the investments that describe as foreigners to activate an international arbitration against the country to dissolve possible controversies.

The Venezuelan Government excluded in 2007 the arbitration clause when the 33 mixed companies were constituted after the migration of the old operative agreements (lending companies of services of Pdvsa) and did the same with contracts of the new companies after the nationalization of the four enhancers of crude heavy of Petroliferous Faja of the Orinoco.

The director of the Center of Arbitration of the Chamber of Commerce of Caracas, Droulers Morning call, said that although the clause is excluded from “commercial arbitration” in contracts of mixed companies for the Carabobo project of Faja, or for any other case, whenever it is foreign investments, the Venezuelan Constitution and the Law of Promocióny Protection of Investments allow that route.

The situation is different with the companies from Venezuelan capital. If the arbitration is not built-in its contracts, the differences will have to be solved before the ordinary courts of the country.

Articles 253 and 258 of the Constitution recognize that route for the foreign partners of Pdvsa. Droulers explains that article 258 indicates that “the law will promote the alternative arbitration, conciliation, mediation and any other means for the solution of controversies”.

But later the Magna Carta sends to the Law of Promotion and Protection of Investments - decreed during the first year of government of president Hugo Chávez- that in its article 22 of the chapter of “Solution of Controversies” indicates that the differences can “be put under an international arbitration”.

The expert indicated that these aspects were incorporated in 1999 as much in the Constitution as in the law to attract foreign investments.

The director of the arbitration center explains that the easiest route for a country is to incorporate the clause of “commercial arbitration” as is denominated in contracts because it is less onerous for the country.

According to the present laws, although the arbitration in contracts is not included, the foreigners can demand to Venezuela before the Center the International of Adjustment of Differences Regarding Investments (Ciadi) of the World Bank before a conflict. The arbitration also can be activated in the country of origin of the foreign investment if a treaty of that country with Venezuela is effective.

“The arbitration before the Ciadi is more complicated”, explained Droulers. “It is easier to incorporate the commercial arbitration in contracts”.

At the moment in the World Bank they attend demands against Venezuela. They are the cases of the cementeras Holcim and Cemex. Equal happens with oil the Exxon and Conoco.

Deisy Buitrago
THE UNIVERSAL ONE