Source: Sharecast
In a statement released in New York on Thursday night, Venture confirmed that the International Chamber of Commerce (ICC) International Court of Arbitration had ruled in favour of BP, which is seeking damages in excess of $1bn as well as interest and other fees.
It found Venture had breached its obligations to BP to declare commercial operations had begun at the Calcasieu Pass LNG plant in Louisiana plant in a timely manner and to act as a reasonable and prudent operator.
BP had accused Venture of profiteering after gas prices spiked in early 2022, following Russia’s invasion of Ukraine.
It claimed Venture had failed to deliver LNG shipments under a long-term supply contract, opting instead to sell them for higher prices on the spot market.
As at 1230 BST, the Wall Street stock had plummeted 19% in pre-market trading.
Venture said it was "disappointed" with the decision, adding: "The company is currently evaluating all available options in response to the tribunal’s ruling and will continue to vigorously defend our position."
A number of other parties are pursuing similar cases against Venture, but this is the first to have succeeded.
In August, Venture defeated Shell in the first case to be heard by the ICC. But it still faces cases from other European companies as well as China’s Sinopec.
In a statement, BP said: "We look forward to the next phase of the arbitration process, which will determine the damages to be paid to BP as a result of the Venture Global breach of contract."
Founded in 2013, Venture Global listed in January in the biggest-ever initial public offering by a LNG company.
However, the $58bn debut fell short of expectations, and the shares have faltered since then. The stock has now lost 48% in the year to date.
