The High Court of Trinidad and Tobago has upheld the decision to recognize ConocoPhillips’ arbitration claim against Venezuela. This development could potentially freeze the state’s payments to Caracas on joint gas projects.

In late May, an initial court ruling allowed ConocoPhillips to enforce a $1.33 billion claim against Venezuela in Trinidad. This ruling enables ConocoPhillips to seize revenues from joint energy projects if it can prove that Venezuela or PDVSA has assets in the country.

This situation complicates ongoing negotiations between the two powers and energy companies aiming to develop offshore gas fields shared by the two countries.