*

ICSID awarded a $8.37 billion payment plus interests to

Conoco

in 2019

*

Conoco has not stopped pursuing PDVSA's overseas assets

*

Annulment dismissal could change amount to be cashed in

Delaware

(Adds context on Conoco's awards in paragraphs 2 and 9-10,

Conoco's reaction in paragraphs 7 and 12, and status of Citgo's

auction in paragraph 15)

By Marianna Parraga

HOUSTON, Jan 23 (Reuters) - A World Bank arbitration

tribunal has dismissed a request by Venezuela to annul a $8.37

billion arbitration award to ConocoPhillips ( COP ), clearing

the way for the U.S. producer to reclaim compensation for the

expropriation of its oil assets in the South American country.

The International Centre for Settlement of Investment

Disputes (ICSID) declared the expropriation 'unlawful' and in

2019 awarded billions of dollars in compensation to Conoco - the

largest amount ordered to be paid to a foreign firm after late

President Hugo Chavez' nationalization wave.

But Venezuela later introduced an amount rectification

request and an annulment request.

"Venezuela's applications to annul the award are dismissed,"

the court said in its decision, ordering Venezuela to bear its

own legal fees, cover $1.35 million in annulment proceeding

costs, and pay Conoco $6.46 million for legal expenses.

ICSID's decision on the annulment, seen by Reuters on

Thursday, was communicated to the parties this week, according

to the court's webpage.

Venezuela might have exhausted all legal avenues to stop

that arbitration ruling from being enforced, lawyers said.

"ConocoPhillips ( COP ) is pleased with yesterday's decision from

the ICSID annulment committee. The decision upholds the

principle that governments cannot unlawfully expropriate private

investments without paying compensation," Conoco said in an

email.

Venezuela's communication ministry did not immediately reply

to requests for comment.

Conoco brought the arbitration before ICSID in 2007 after

Chavez' government took over three oil projects where the

company had stakes - Petrozuata, Hamaca and Corocoro.

Following two victories at international arbitration courts

over Venezuela and its state-owned company PDVSA, Conoco has in

recent years tried to seize Venezuelan assets overseas.

The firm last year asked a court in Trinidad and Tobago to

seize payments to Venezuela from joint offshore gas projects.

"We remain committed to pursuing all available legal avenues

to protect our rights and obtain a full and fair recovery of the

awards," Conoco added in the email.

Conoco also is the largest claimant in a high-profile case

in the U.S. federal court of Delaware.

In that case, 18 companies which were defaulted or whose

assets were expropriated in Venezuela are seeking to cash up to

$21.3 billion from an auction of shares in the parent of

Venezuela-owned refiner Citgo Petroleum, the country's crown

jewel.

The auction is set to restart bidding this year, after a

$7.3 billion conditional offer selected by a court officer

overseeing the sale process was rejected by most creditors,

including Conoco.