LICENSE No. VENEZUELA-2018-353747-1, LICENSE No. VENEZUELA-2018-353747-2, LICENSE No. VENEZUELA-2018-353747-4, LICENSE No. VENEZUELA-2018-353747-5, LICENSE No. VENEZUELA-2018-353747-6

Date issued: Sep. 04 2024

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TURBOFAC Commentary (2034 words)

Notes:

[10-22-26 Update - added iterations 5 and 6, with iteration 6 changing the authorization "section to read the license from "entering into and executing a settlement agreement" to “negotiate, enter into and execute a settlement agreement,” which adheres more closely to OFAC practice of distinguishing between those three categories of activities]

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1) BACKGROUND; CHRONOLOGY

The two specific licenses, License No. VENEZUELA-2018-353747-1 (July 24, 2018) and LICENSE No. VENEZUELA-2018-353747-2 (an amended version of -1 (April 25, 2019)), were produced in the context of litigation arising from a default, by the Venezuelan state-owned oil company “PDVSA,” on debts owed to two Venezuelan subsidiaries of ConocoPhillips, a U.S. person oil & gas company. More specifically, ConocoPhillips was issued an arbitral award on April 24, 2018, in an arbitration held by the International Chamber of Commerce (ICC). Prior to a substantive discussion of...