ICSID’s aprox $155 Million award in favor of Tenaris on the nationalization of Tavsa and Comsigua by Venezuela


Freshfields Bruckhaus Deringer, D’Empaire Reyna Abogados and Foley Hoag has advised on the dispute

Tenaris and its wholly-owned subsidiary Talta – Trading e Marketing Sociedad Unipessoal Lda (Talta) announce the release by the International Centre for the Settlement of Investment Disputes (ICSID) of its award in relation to the arbitration proceedings against the Bolivarian Republic of Venezuela (Venezuela) over the expropriation of their investments in Tubos de Acero de Venezuela S.A. (Tavsa), the sole producer of seamless steel tube products in Venezuela, and Complejo Siderúrgico de Guayana, C.A. (Comsigua), a producer of hot briquetted iron in Venezuela.

Tenaris and Talta initiated the arbitration proceedings on July 20, 2012 pursuant to the bilateral investment treaties entered into by Venezuela with the Belgium-Luxembourg Economic Union and Portugal. On December 12, 2016, the ICSID Arbitral Tribunal released its final Award in favour of Tenaris and Talta, upholding their claim that Venezuela had expropriated their investments in Tavsa and Comsigua in violation of the bilateral investment treaties entered into by Venezuela with the Belgium-Luxembourg Economic Union and Portugal. The award granted Tenaris and Talta compensation in the amount of US$137.0 million for the breaches and US$24.6 million in pre-award interest. In addition, Venezuela was ordered to reimburse Tenaris and Talta US$3.3 million in legal fees and ICSID administrative costs.

Freshfields Bruckhaus Deringer has advised Tenaris S.A. and Talta-Trading e Marketing Sociedad Unipessoal Lda. with Nigel Blackaby (Picture), Noiana Marigo and Caroline Richard.

D’Empaire Reyna Abogados has advised Tenaris S.A. and Talta-Trading e Marketing Sociedad Unipessoal Lda. with José Humberto Frías.

Foley Hoag LLP has advised the Bolivarian Republic of Venezuela with Kenneth Figueroa and Mélida Hodgson.

Involved fees earner: José Humberto Frías – D’Empaire Reyna ; Kenneth Figueroa – Foley Hoag; Mélida Hodgson – Foley Hoag; Nigel Blackaby – Freshfields Bruckhaus Deringer LLP; Noiana Marigo – Freshfields Bruckhaus Deringer LLP; Caroline Richard – Freshfields Bruckhaus Deringer LLP;

Law Firms: D’Empaire Reyna ; Foley Hoag; Freshfields Bruckhaus Deringer LLP;

Clients: Tenaris; Republic of Venezuela;

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Author: Ambrogio Visconti