Venezuela’s troubled state oil firm PDVSA has settled a lawsuit against it by China’s state oil firm Sinopec, according to Reuters.
The suit, brought in US district court in Houston, involved a subsidiary of Sinopec claiming $21.5m was owed to it by PDVSA for steel rebar it supplied.
Sinopec claimed a breach of contract and conspiracy to defraud by PDVSA. But in agreeing to make the payment, which will be paid in renminbi, PDVSA said the agreement did not entail acknowledgment of fault or responsibility on its part.
China and Chinese firms have been supportive of Venezuela’s beleaguered socialist government in recent years.
PDVSA manages the world’s biggest oil resources – including vast offshore fields -but it has been struggling because of the oil-price slump combined with accusations of corruption and incompetent management.