Analysis: Venezuela-Exxon dispute incandesced, triggering oil market concerns
Courts in Britain, the Netherlands and the United States agreed to freeze assets worthy of some 12 billion U.S. dollars owned by Venezuelan state oil company Petroleos de Venezuela SA (PDVSA), announced Exxon on Friday.
Exxon, the world’s largest oil company, has fought for compensation for a project loss in Venezuela’s nationalization drive of its energy sector.
The orders guarantee Exxon’s payment should it win arbitration over Venezuela’s nationalization of the Cerro Negro heavy oil project.
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The Exxon announcement came at a time when the Venezuelan government is reportedly in need of cash to fund President Hugo Chavez’s social programs.U.S. daily Los Angeles Times reported that the PDVSA renegotiated a loan of some 1.1 billion dollars from the French Bank BNP Paribas recently.
At the Venezuelan blogs:
Venezuela News and Views: The PDVSA 12 billion: They are missing or not? They matter or not?
The Devil’s Excrement: UK Court gives ExxonMobil injunction over US$12 billion in PDVSA assets
I’m trying to schedule a special podcast today, and will be adding to this post. Stay tuned!
