UPDATE 1-ConocoPhillips settles with Venezuela's PDVSA to recover $2 bln

(Adds details on deal)

Aug 20 (Reuters) - U.S. oil producer ConocoPhillips said on Monday it has settled with Venezuela's state-run oil company, PDVSA, to recover about $2 billion for early dissolution of some joint ventures following the nationalization of the country's oil industry.

The settlement follows a ruling by the International Chamber of Commerce (ICC) in April that ordered PDVSA to pay Conoco $2 billion.

PDVSA has agreed to make an initial payment of around $500 million within a period of 90 days from the time of signing the agreement, ConocoPhillips said in a statement.

The remaining amount is to be paid quarterly over a period of 4-1/2 years, Conoco said.

Conoco's assets in Venezuela were expropriated in 2007 following Venezuela's nationalization drive. The world's largest independent oil and gas producer left Venezuela after it could not reach a deal to convert its projects into joint ventures controlled by PDVSA.

ConocoPhillips said it has agreed to suspend its legal enforcement of the arbitration award following its settlement with PDVSA. (Reporting by Nivedita Bhattacharjee; Editing by Anil D'Silva and Saumyadeb Chakrabarty)