[progchat_action] Exxon's Venezuela claim said to be fraction of asset freeze
 
Date: Fri, 15 Feb 2008 08:12:18 -0600 (CST)



Exxon's Venezuela claim said to be fraction of asset freeze

By Brian Ellsworth
Reuters
February 14, 2008

Caracas - Venezuela on Thursday minimized the compensation it owes Exxon
Mobil Corp for an oil project, the latest volley in hard-ball negotiations
that have prompted a threat to stop sending America oil.

Energy Minister Rafael Ramirez said a crude project seized from Exxon
(XOM.N: Quote, Profile, Research) was worth less than $1.2 billion (609.4
million pounds) -- a fraction of the $12 billion in Venezuelan assets frozen
by court orders the U.S. giant won last week.

"What we estimate is a tiny number compared to what they are trying for with
the asset freeze," he said. "It doesn't even reach 10 percent of that."

Leftist President Hugo Chavez has called the legal gambit an "imperialist"
move orchestrated by Washington to undermine his self-styled revolution. He
has threatened that the South American OPEC country might cut off oil
exports to the United States in retaliation.

Texas-based Exxon Mobil, the biggest U.S. company, is seeking compensation
for its holdings in the Cerro Negro heavy oil project that Chavez took over
during a nationalization crusade last year.

Venezuela has seen Exxon documents that put a limit on compensation at $5
billion, exposing the company's $12 billion ploy as exaggerated, Ramirez
said .

Venezuela this week said it had cut oil exports to Exxon in protest over the
asset freeze, but said Venezuela would continue to supply oil to the
Chalmette refinery -- a joint venture between Exxon and Venezuelan state oil
company PDVSA.

Ramirez added Venezuela is moving toward a deal with another U.S. oil
company, ConocoPhillips (COP.N: Quote, Profile, Research), to pay
compensation for two multibillion-dollar oil projects nationalized last year
during the same proceedings that led to the Exxon suit.

"Conoco has asked for and maintained a level of communication that allows a
friendly solution to our dispute," he said in a speech to Congress. "We are
on the way to reaching an agreement."

ConocoPhillips said on Tuesday it hoped to end the talks with Venezuela's
state-run oil company PDVSA this year.

ConocoPhillips also said it had no plans to launch a legal offensive against
Venezuela.

A U.S. court on Wednesday froze a U.S. bank account holding PDVSA funds
until an arbitration panel reaches a final decision on Exxon's claim,
reinforcing an earlier temporary decision.

http://uk.reuters.com/article/oilRpt/idUKN1446608120080214

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