PDVSA Steps up Legal Actions Against PetroSaudi

Instant Max AI

(PDVSA, 24.Feb.2017) – PDVSA, through its subsidiary PDVSA Servicios SA, has been involved in a legal battle against PetroSaudi Oil Services Ltd.

Among other claims, PDVSA seeks to obtain compensation for damages incurred due to the poor performance of the offshore drilling unit contracted to carry out drilling and well completion activities in the gas reservoirs located north of Sucre state, as part of the Gran Mariscal Sucre project.

Following a PDVSA Executive Committee decision, a series of legal actions were agreed upon in August 2015, leading to Commercial Arbitration based in Paris and governed under the laws of the Bolivarian Republic of Venezuela.

During the course of legal actions several decisions have been made in favor of PDVSA, thus preventing the defendant, PetroSaudi Oil Services Ltd. from continuing to abuse, in an unscrupulous manner, the good faith of the parties in the execution of the activities related to the rendering of the offshore drilling services. The Arbitral Tribunal, which has heard the reasons for the contractual disputes, is expected to issue a Final Award during the fourth quarter of this year.

The High Court of Justice in England, having heard the case in first instance, issued a judgment last October 2016, declaring fraudulent, null and void the actions taken by PetroSaudi Oil Services Ltd. to execute guarantees and obtain payments in flagrant contravention to the decision by the Arbitral Tribunal prohibiting access to amounts of money that are in dispute in said proceedings until a final judgment on merits is rendered.

This Judgment was appealed by the contractor to the Court of Appeal of England, which erroneously overturned the decision of the High Court of Justice. However, the execution of this Judgment has been temporarily suspended and accordingly, PDVSA is taking all pertinent legal actions.

Pursuant to the foregoing, on February 9 of the current year an application for permission to appeal was made to the Supreme Court of the United Kingdom to ask for a correction of the errors made by the aforementioned Court of Appeal.

PDVSA will tirelessly pursue all means to defend its assets, which belong to the Venezuelan people.

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