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Owens-Illinois Sues Venezuela To Collect $500 Mln Arbitration Award

Owens-Illinois Inc. (OI) sued four companies owned by Venezuela, including Petroleos de Venezuela SA and Citgo Petroleum Corp., to collect a $500 million arbitration award over the 2010 nationalization of two plants located in the South American nation.

The suit, filed in federal court in Delaware Monday, claims the companies are "alter egos, and mere instrumentalities of Venezuela itself," and should be forced to pay the award.

Owens-Illinois, a U.S. manufacturer of glass containers, is among a group of companies that have made claims against Venezuela over expropriations of property under President Hugo Chavez, who died in 2013. Crystallex International Corp. and Venezuela agreed to settle a $1.2 billion dispute over the 2011 nationalization of a gold deposit in the South American nation and ConocoPhillips said it'll get $2 billion in a separate settlement with PDVSA.

Perrysburg, Ohio-based Owens-Illinois is trying to collect on a 2015 award by a three-member panel of the International Centre for Settlement of Investment Disputes, which said the company was entitled to $372 million plus interest. The suit was filed by a Dutch subsidiary, OI European Group BV.

The tribunal found that Venezuela violated its obligations under a 1991 investment treaty with the Netherlands.

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