Article

2008-02-08 Caribbean-Latin America

Courts freeze US$12 billion Venezuela assets around the world for Exxon

Is this why Presidente Chavez was demanding cash payment upon order the other day?

"In Oogo we trust. All others pay cash."

Exxon Mobil Corp has moved to freeze up to $12 billion in Venezuelan assets around the world as the U.S. company fights for payment in return for the state's takeover of a huge oil project last year. The company said it has received court orders in Britain, the Netherlands and the Netherlands Antilles each freezing up to $12 billion in assets of Venezuela state oil firm PDVSA.

Exxon also won a court order from the U.S. District Court for the Southern District of New York in December freezing more than $300 million belonging to PDVSA, as Exxon argued it would have little chance to recoup its investment from PDVSA should it win its arbitration. Exxon filed for arbitration in September. It has not specified how much it wants for the 41.7 percent stake in the Cerro Negro project, but it has said its remaining net book investment in the project was about $750 million at the time the assets were expropriated.

PDVSA, one of the largest suppliers of crude oil to the United States, was not immediately available for comment. Exxon said in court filings that recent estimates have placed PDVSA's global asset value -- including its operations in Venezuela -- at over $62 billion.

Venezuelan President Hugo Chavez took over Exxon Mobil and ConocoPhillips stakes in multibillion-dollar heavy oil projects in Venezuela's oil region last June.

Posted by trailing wife 2008-02-08 00:00|| || Front Page|| [11140 views ] Top

#1 Ya' beat me to the posting, tw.

I'll warm up the popcorn machines.... :-D

Posted by Barbara Skolaut">Barbara Skolaut 2008-02-08 01:19|| http://ariellestjohndesigns.com/]">[http://ariellestjohndesigns.com/] 2008-02-08 01:19|| Front Page Top

#2 It occurs to me after a night's sleep that ConocoPhillips will want some asset freezing to cover their Venezuelan investments. The last sentence of the article says multibillion-dollar heavy oil projects.

Barbara, I'll start setting up platters of crudites and dips. Popcorn may well not be enough, and I'm tired of waiting for Israel to get on with it.

Posted by trailing wife">trailing wife 2008-02-08 10:11|| 2008-02-08 10:11|| Front Page Top

#3 platters of crudites

Isn't there enough crudity on the Interweb already without piling it up on plates?

Posted by SteveS 2008-02-08 13:45|| 2008-02-08 13:45|| Front Page Top

#4 So why hasn't there been a 'work accident' at these refineries putting them out of action? seems the hugo will have to pay dearly to find workers to put it back on line should some calamatiy befall it!!

Posted by USN,Ret. 2008-02-08 15:01|| 2008-02-08 15:01|| Front Page Top

#5 USN Ret - Maybe they think Yugo is going to get whacked soon and they don't want to have to repair the facilities when they move back in?

Posted by Barbara Skolaut">Barbara Skolaut 2008-02-08 15:51|| http://ariellestjohndesigns.com/]">[http://ariellestjohndesigns.com/] 2008-02-08 15:51|| Front Page Top

#6 "Seniorita Payback," Hugo lamented, "esa muchacha es una perra."

Posted by Mike 2008-02-08 15:56|| 2008-02-08 15:56|| Front Page Top

#7 Easy on the popcorn. If Chavez and Exxon get into a p*ssing contest OUR shoes are going to get wet. If you think oil prices are high now, just watch what happens if supply goes off-line, or if people even fear it might go off-line, regardless of reason. When oil company profits are lost to stunts like Venezuela's, one (or more) of three things will happen: 1) prices will be increased and profit made up somewhere else (at your expense), 2) investment decreased in other projects (and supply lost and prices increased - again at your expense) and 3) dividends cut, mutual fund based retirement income lost, tax revenues decline, etc. ANY disruption of the force ends up costing YOU.

Posted by Glenmore">Glenmore 2008-02-08 16:53|| 2008-02-08 16:53|| Front Page Top

#8 Glenmore, you forgot the fourth potential action, regime change.

Posted by RWV 2008-02-08 17:40|| 2008-02-08 17:40|| Front Page Top

#9 Hugo turns out to be a common thief but on a large scale. He tries to sell it to the people as socialism and redistribution of the wealth while at the same time lining his own pockets and getting rich--socialism and Marxism--what a sham and scam. Sorry Venezuela that you got such a scumbag leader.

Posted by JohnQC 2008-02-08 18:32|| 2008-02-08 18:32|| Front Page Top

#10 WAFF > THREE KILO SUBS FOR VEENZUELA; + TOPIX > IRAN PLANTS ITS FLAG IN THE WILDS OF NICARAGUA.

As a former IRAN-CONTRA + PANAMA Specops vet, I have to say I find the news on Nicaragua a bit personally ironic = ambiguously dissettling/
perturbing. HMMMMMMM .......HELPED REAGAN AND THE USA WIN A COLD WAR ONLY TO LOSE AMERICA, THE NATION AND THE PEACE, TO SOCIALISM???

Posted by JosephMendiola 2008-02-08 21:02|| 2008-02-08 21:02|| Front Page Top

#11 I worked for Kennecott Copper when Salvadore Allende tried this nationalization stunt on Kennecott without compensation. This included the El Teniente copper mine, the largest underground copper mine in the world. Kennecott lawyers went all over the world and got court orders seizing the great majority of copper-bearing ships from Chile and Salvadore could not sell his product.

Salvadore tripped on something and the rest is history, so to speak.

Posted by Alaska Paul">Alaska Paul 2008-02-08 23:01|| 2008-02-08 23:01|| Front Page Top

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