Arbitrators appointed in Exxon-Pdvsa dispute

An appendix to the claim in Hague is hanging on (Photo: AP)

Last August 8th, the arbitral board entrusted with the case at ICSID started operations

EL UNIVERSAL
MARIANNA PÁRRAGA

The International Centre for Settlement of Investment Disputes (ICSID) posted on its website that the arbitration panel that will hear the case of US oil-company ExxonMobil versus the Republic of Venezuela was established last August 8th.

French Gilbert Guillaume was named the president; Egyptian Ahmed Sadek El Kosheri and Swish Gabrielle Kaufmann will be the arbitrators.

Exxon applied for international arbitration at ICSID on October 10th, 2007, shortly after the Venezuelan state, through state oil holding Petróleos de Venezuela (Pdvsa), resolved to expropriate Cerro Negro and La Ceiba operations for failure to reach an amicable settlement on migration to joint venture.

Last June was the deadline to agree on migration with private oil companies based in the Orinoco Oil Belt. However, the parties failed to make a deal both on the amount of the negotiation and the conditions, particularly, the possibility of applying for international arbitration in the face of any dispute.

In reply, ExxonMobil requested two arbitrations -one at ICSID and another at the International Chamber of Commerce, as set forth in the partnership agreement terminated by Pdvsa.

Concomitantly, it requested from the Supreme Tribunal of Justice of England a preemptive measure to freeze up to USD 12 billion of Pdvsa global assets. The motion was later denied by judge Paul Walker. An appendix to the action brought at Hague is on standby.

Translated by Conchita Delgado