Procedural Posture and Purpose

This document is a Memorandum of Law submitted by Petitioner Union Glory Limited in the United States District Court for the District of Delaware, in support of a Motion for a Conditional Writ of Attachment Fieri Facias. The Petitioner seeks to attach the shares of PDV Holding, Inc. (PDVH)—a Delaware corporation wholly owned by Petroleos de Venezuela, S.A. (PDVSA)—in aid of executing a London arbitral award rendered against PDVSA’s wholly-owned subsidiary, PDVSA Petroleo, S.A. The motion is filed conditionally, pending the Court’s confirmation of the underlying arbitral award and the formal entry of judgment.

Principal Legal Issues and Petitioner's Position

The principal legal issue addressed is whether PDVSA can be held liable for the arbitral debt of its subsidiary, PDVSA Petroleo, under an alter ego theory, thereby permitting the attachment of PDVSA’s assets (the PDVH shares) under the Foreign Sovereign Immunities Act (FSIA). The Petitioner argues that PDVSA exercises absolute dominance and economic control over PDVSA Petroleo, routinely disregarding corporate formalities. In support of this veil-piercing argument, the Petitioner highlights that PDVSA commingled funds by paying over $30 million in charter hire obligations on behalf of its subsidiary, utilized indirect subsidiary funds to satisfy debts, and shared headquarters, legal counsel, and administrative personnel with PDVSA Petroleo.

Furthermore, the Petitioner contends that the requirements of 28 U.S.C. § 1610(c) have been satisfied, as a "reasonable period of time" has elapsed since the issuance of the arbitral award and the subsequent notice to the Respondent. The Petitioner asserts that PDVSA has demonstrated no intention of satisfying the debt voluntarily, justifying immediate post-judgment execution measures.

Sanctions Compliance and Requested Relief

Addressing regulatory constraints, the Petitioner maintains that the requested relief does not conflict with the U.S. sanctions regime against Venezuela. Relying on guidance and specific licenses issued by the Office of Foreign Assets Control (OFAC), the Petitioner notes that prefatory steps toward attachment, including obtaining a conditional writ and being designated as an Additional Judgment Creditor under the Court's established sale procedures, are permissible without a specific enforcement license.

Ultimately, the Petitioner requests that the Court authorize the issuance of a conditional writ of attachment against the PDVH shares and formally name Union Glory Limited as an Additional Judgment Creditor, enabling its participation in the ongoing judicial sale process of PDVH assets.