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February 22, 2008 |
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PETROLEOS DE VENEZUELA: Asks Exxon to Stop Asset Freeze Scheme Venezuelan state-run oil firm Petroleos de Venezuela SA's president and oil and energy minister Rafael Ramirez has asked Exxon Mobil Corp. to stop judicial actions that led to the freezing of Petroleos de Venezuela's assets in London and New York, Venezuelanalysis.com reports. Minister Ramirez commented to Venezuelanalysis.com, "We have heard various messages from Exxon. What we are asking is that we return to the situation as it was under arbitration." Minister Ramirez had described Exxon Mobil's arbitration process in the International Center for Settlement of Investment Disputes over a compensation claim for a nationalized oil joint venture in Venezuela as "a measure that is an abuse of our country, given that negotiations with the other companies have moved forward within the framework of our rights and laws, and resulted in a successful migration process". According to Minister Ramirez, Exxon Mobil went "beyond the actions stipulated by international arbitration by trying to freeze our assets in London and New York courts". Exxon Mobil's former assets in Venezuela were worth less than US$1 billion, contrary to its multi-billion-dollar claim, Minister Ramirez told Venezuelanalysis.com. He indicated that Exxon Mobil represented the smallest investment of all investments made by upgraders in the Orinoco Oil Belt. In this sense, little was invested in the country to capture the profits of the Chalmette Refinery. Exxon Mobil's chairperson Robert Olsen told Reuters that his company is willing to negotiate. However, Minister Ramirez said that Exxon Mobil's case entails a political interest of cornering and harassing Venezuela, and for this reason all discussions have come to an end "because we will not accept for any company to disregard our sovereign decisions". Minister Ramirez also clarified that Petroleos de Venezuela cannot be subjected to an embargo because the company enjoys jurisdictional immunity. Petroleos de Venezuela will challenge further asset freeze court orders in London, the Netherlands, and the Dutch Antilles, Venezuelanalysis.com relates. Mr. Ramirez said that Petroleos de Venezuela is handling the case with the pertinent responsibility and it will continue to try by all possible means to successfully conclude this process. Minister Ramirez affirmed that the country's legal entities are working in this regard, and that there are enough legal arguments to bring legal actions against Exxon Mobil. About Exxon Mobil Exxon Mobil Corporation operates as a petroleum and petrochemicals company. It primarily engages in the exploration, production, and sale of crude oil and natural gas; and manufacture, transportation, and sale of petroleum products. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/ -- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook was negative. |
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