ConocoPhillips sues Venezuela's PDVSA, says bond swap fraudulent

|About: ConocoPhillips (COP)|By:, SA News Editor

ConocoPhillips (NYSE:COP) is suing Venezuela's PDVSA in a Delaware court, accusing it of fraudulent operations involving its U.S. subsidiary Citgo.

COP claims that several PDVSA operations, including an ongoing bond swap that uses shares in Citgo as collateral, are part of an effort to prevent it from collecting compensation in a dispute over a 2007 nationalization of its Venezuela holdings.

COP has long pursued a case against Venezuela in a World Bank tribunal to obtain billions of dollars in compensation for the Hugo Chavez-led takeover of its Venezuela assets; a partial ruling in 2013 by the tribunal said the takeover was illegal.

PDVSA says the bond swap is legal and that the lawsuit has no legal basis.

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