Trinidad and Tobago’s High Court reaffirmed its decision on Thursday to recognize U.S. oil producer ConocoPhillips’ arbitration claim against Venezuela. This ruling allows ConocoPhillips to potentially freeze payments to Venezuela from joint natural gas projects, reinforcing the company’s $1.33 billion claim for past expropriations.

The court’s initial decision in late May opened the door for ConocoPhillips to enforce its claim in Trinidad by targeting compensation from joint energy projects. Judge Frank Seepersad emphasized that ConocoPhillips could proceed if it establishes that Venezuela or its state-owned oil company, PDVSA, holds assets or is owed money by entities in Trinidad and Tobago.

Venezuela and PDVSA did not respond to the court within the stipulated deadline. Earlier this month, Venezuela’s embassy in Port of Spain acknowledged receipt of the court order, further solidifying the ruling.

The enforcement of this claim comes after PDVSA paid ConocoPhillips about $700 million as part of a settlement agreement, which ceased payments in late 2019. ConocoPhillips has since sought similar enforcement actions in other Caribbean countries.

In the U.S., ConocoPhillips is among the top creditors pursuing proceeds from the auction of shares in PDVSA’s subsidiary, PDV Holding, which owns Houston-based refiner Citgo.

Trinidad, Venezuela, and energy companies like NGC, Shell, and BP are collaborating on developing major offshore gas fields. The Dragon gas field, holding 4.5 trillion cubic feet of gas, is a significant project in these efforts, with plans to export gas to Trinidad for conversion into LNG and petrochemicals. Payments from this project are crucial for Venezuela and PDVSA.

ConocoPhillips has specifically targeted the Dragon project in its enforcement efforts, arguing that Trinidadian entities owe payments to PDVSA for access to gas reserves. While NGC has stated it has not received any related documents, it continues to progress the Dragon gas project with its partners.

Shell and ConocoPhillips declined to comment on the ruling, and PDVSA did not immediately respond to requests for comment.

The ruling underscores ongoing tensions and financial disputes involving Venezuela’s expropriation actions and highlights the broader implications for energy collaborations in the Caribbean region.