Venezuela Bid to Review $46 Million Tidewater Award Rejected

CARACAS, July 8 (Reuters) – Venezuela’s request to assessment a $46 million compensation declare it has been ordered to pay to grease service firm Tidewater was rejected and the keep on the award’s execution lifted, a World Bank tribunal mentioned in a call posted on its web site on Wednesday.

[contextly_sidebar id=”ASHndlqBCwgJqx8C1xdghkNukEBs7sLp”]The South American OPEC nation had sought a revision “based on what it describes as an error in the tribunal’s damages calculation,” an International Center for Settlement of Investment Disputes’ (ICSID) tribunal mentioned in its choice.

In its rejection, the tribunal mentioned the award had “taken into account the totality of the evidence presented to it in determining the appropriate level of compensation to be awarded, based upon a discounted cash flow analysis.”

The award consists of round $44 million in owed invoices. Venezuela’s oil minister mentioned in an interview in March: “We will pay what we have to pay,” although he mentioned he hoped to get the quantity diminished.

Tidewater and the Venezuelan authorities didn’t instantly reply to a request for remark.

Late socialist chief Hugo Chavez seized 11 Tidewater ships in 2009 after signing a legislation to nationalize them, in accordance with Tidewater.

Venezuela faces shut to twenty claims at ICSID that largely stem from state takeovers throughout Chavez’s 14-year rule, with a number of awards being determined within the final 12 months.

The cash-strapped nation has sought revisions or annulments, in addition to recusal of arbitrators, in a few of these circumstances amid a tumble in oil costs and a extreme recession.

Several of those motions have been turned down in latest weeks.

Earlier this month, for example, the ICSID Administrative Council rejected Venezuela’s request to recuse two arbitrators in a dispute with U.S. oil agency ConocoPhillips, describing Venezuela’s complaints as “unsubstantiated” and “irrelevant.” (Reporting by Eyanir Chinea and Alexandra Ulmer; Editing by Leslie Adler)