2023-12-19 23:59:51
A New York jury ruled in favor of Citgo Petroleum in a dispute with insurers that refused to pay a demand from the refiner for a shipment of oil, equivalent to 1 million barrels, that was purchased from PDVSA in 2019 and that was subsequently seized in the country, according to information from Bloomberg.
A little context: In 2019, the United States government recognized opposition leader Juan Guaido as the country’s legitimate ruler and imposed other restrictions on Venezuela and PDVSA.
In response, the Venezuelan government ordered the ships to stop in Venezuelan territorial waters. At that time, the oil purchased by Citgo was being transferred to an oil tanker named “Gerd.”
According to the agency ReutersVenezuelan authorities then denied the tanker permission to leave the country’s waters, leaving it stuck off the coast of Venezuela for more than a year.
Citgo also said the Gerd crew initially rejected instructions from Venezuelan authorities to return the oil to the country. However, they finally relented after authorities boarded the ship in February 2020.
Citgo wins long dispute
In this way, after a 13-month confrontation, The jury awarded Citgo more than 54 million dollars for the million barrels lost in Venezuela.
Citgo submitted a claim to the insurers, a group of syndicates at Lloyd’s of London, seeking coverage under a provision of its policy that covers seizure losses arising from insurrections.
But the insurers denied the claim, arguing that the political unrest did not amount to an insurrection and that, in any case, the seizure was due to Citgo’s failure to pay for the oil.
The court had already ruled that The agitation surrounding the Venezuelan elections constituted an insurrectionbut asked the jury to determine whether that had caused the seizure. The jury members decided yes.
Lloyd’s had no immediate comment on the verdict.
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