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Helmerich & Payne International Drilling Co. v. Venezuela

784 F.3d 804 (2015)

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Helmerich & Payne International Drilling Co. v. Venezuela

United States Court of Appeals for the District of Columbia Circuit
784 F.3d 804 (2015)

  • Written by Haley Gintis, JD

Facts

Helmerich & Payne de Venezuela (H&P-V) (plaintiff), a subsidiary of the Oklahoma-based company Helmerich & Payne International Drilling Co. (H&P-IDC) (plaintiff) operated an oil-drilling business in Venezuela. The Venezuelan government (defendant) contracted with H&P-V to provide oil to the government’s oil company, Petróleos de Venezuela, SA (PDVSA). H&P-V completed its contractual obligations but did not receive payment from PDVSA. In response, H&P-V announced that it would not renew any contracts and disassembled the drilling rigs. The Venezuelan National Guard then blockaded H&P-V’s properties throughout Venezuela to prevent the removal of the oil rigs and to force contract negotiations. During the blockade, the Venezuelan government issued press releases declaring anti-American sentiment. H&P-IDC and H&P-V filed suit against Venezuela. The suit alleged that Venezuela had engaged in the unlawful taking of property and had breached the contract by not paying H&P-V for the services provided. Venezuela claimed immunity under the Foreign Sovereign Immunity Act and moved to dismiss the case.

Rule of Law

Issue

Holding and Reasoning (Tatel, J.)

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