A Legal Twist Unfolds
Editor’s note: The headline of this story has been updated to accurately portray ConocoPhillips’ request to postpone a Venezuelan asset auction.
On Friday, ConocoPhillips (NYSE:COP) reportedly asked a U.S. court to postpone its decision on overlapping awards against Venezuela until the proceeds from the auction of shares in a Citgo Petroleum parent are determined.
The U.S. District Court in Delaware is overseeing an auction of shares in a Houston-based Citgo Petroleum parent company to address $21.3 billion in claims related to Venezuela’s past expropriations and debt defaults, as per Reuters.
The Battle for Citgo
The auction is expected to conclude this year and put the Venezuela-owned refiner in the hands of rivals or investors.
As per the report, Conoco’s three claims total over $11.5 billion, more than half of the amount of money sought in the case.
However, a provision in the award mandates the deduction of a partial overlap in two of the awards.
Conoco’s lawyers are asking the court to reject Venezuela’s stance and said in a filing, “The possibility of a double recovery will not arise until, if ever, the sale process raises at least $16.3 billion.”
Market Response and Investment Opportunities
Investors can gain exposure to the stock via IShares U.S. Oil & Gas Exploration & Production ETF and SPDR Select Sector Fund – Energy Select Sector. COP shares are up 0.57% at $128.00 premarket on the last check Monday.