HomeMarket News ConocoPhillips Legal Maneuver in Venezuela Asset Auction ConocoPhillips Makes Bold Move in Legal...

ConocoPhillips Legal Maneuver in Venezuela Asset Auction ConocoPhillips Makes Bold Move in Legal Battle Over Venezuela Asset Auction

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Challenging the Norm

Amidst the chaotic tussle over assets, oil giant ConocoPhillipsCOP has taken a stand. According to reports, the company has urged a U.S. court to pause its decision on enforcing conflicting awards against Venezuela. The request comes in light of pending proceeds from the auction of shares in a Citgo Petroleum parent entity.

Balancing Scales of Justice

The U.S. District Court in Delaware is overseeing the auction of shares in a Houston-based Citgo Petroleum parent company. This move aims to address an eye-popping $21.3 billion linked to Venezuela’s history of expropriations and debt defaults. The conclusion of this auction, slated for this year, could potentially transfer ownership of the Venezuela-owned refiner to competitors or investors.

A Legal Gamble

At the heart of the matter lies Conoco’s claims amounting to over $11.5 billion, representing more than half of the total money at stake in the lawsuit. Legal complexities arise due to a provision requiring the deduction of a partial overlap in two of the claims. Conoco’s legal team is vigorously challenging Venezuela’s viewpoint, asserting that any possibility of double recovery remains contingent on the auction raising a substantial sum of at least $16.3 billion.

Investment Potential

For investors: Interested parties can explore avenues for investment exposure to ConocoPhillips through avenues such as the IShares U.S. Oil & Gas Exploration & Production ETF IEO and the SPDR Select Sector Fund – Energy Select Sector XLE.

Market Movement

Price Update: A premarket check on Monday showed COP shares up by 0.57% at $128.00, highlighting the anticipation and speculation surrounding the unfolding legal drama.

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