On April 1st Venezuelan national oil company PDVSA terminated, unilaterally, the operating service contract for Eni’s mineral activities in the Dacion area.
Eni considers this action a violation of its rights, which are protected by the Bilateral Treaty for the protection of investments between Venezuela and the Netherlands, where subsidiary Eni Dacion B.V., holder of the operating service contract, is registered.
Eni has therefore initiated today arbitration proceedings against Venezuela before the International Centre for Settlement of Investment Dispute (ICSID), a World Bank organization which resolves disagreements in relation to the violation of bilateral treaties for the protection of investments.
Despite this action, Eni is still hopeful of negotiating a solution to obtain full compensation.
