World Bank Rules in Venezuela's Favor, Rejects "Exorbitant Compensation" in Tidewater Nationalizatio
World Bank Rules in Venezuela's Favor, Rejects "Exorbitant Compensation" in Tidewater Nationalization Case
By Lucas Koerner
Caracas, March 18, 2015 (Venezuelanalysis.com) – The International Center for Settlement of Investment Disputes (ICSID) of the World Bank ruled in favor of Venezuela on Monday, rejecting the "exorbitant compensation" demanded by Tidewater. The U.S.-based energy shipping firm was awarded US$46 million in compensation for eleven vessels expropriated by the Bolivarian government of late President Hugo Chavez in 2009.
According to the Venezuelan Ministry of Petroleum, the ICSID decision confirms that the government's nationalization of Tidewater's assets in Venezuela was "totally legal in all aspects".
"The much higher amounts claimed were rejected because the tribunal found that the nationalization was lawful," stated lawyer George Kahale, who represented Venezuela in the case.
In 2007, the Chavez government issued a law-decree nationalizing all remaining oil production sites under foreign control and mandating that all all oil extraction in Venezuela be undertaken in the context of joint ventures, in which the state oil company PDVSA retains the majority stake.
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