Venezuela pays Exxon USD 250 mn for nationalized assets

[Judi Lynn]

Venezuela pays Exxon USD 250 mn for nationalized assets

Caracas, Feb 17 : Venezuela has paid US oil giant ExxonMobil USD 250 million in compensation for the 2007 nationalization of crude assets.

This brings an end to a "legal situation established in past decades" that gave international arbitration courts jurisdiction over sovereign decisions, Oil Minister Rafael Ramirez said, referring to the compensation award handed down by the Paris-based International Chamber of Commerce.

During a televised Cabinet meeting, the minister noted that the US multinational had been seeking USD 12 billion in compensation for the seizure of the Cerro Negro heavy-crude project in the vast Orinoco oil belt.

"As a result of our arguments ... and the reality that the Venezuelan government has never abused its position of power", we managed to have the compensation award reduced to USD 250 million, Ramirez, who is also president of Venezuelan state oil firm PDVSA, said.

More:
http://www.newkerala.com/news/2011/worldnews-159954.html

[Arctic Dave]

1. Well that should put to bed the meme that HC "stole" poor little ExxonMobils assets.

But it won't.

I would have thought people would have had more to say about this.

[naaman fletcher]

2. Well it depends

Even in the US people who are subject to eminent domain regularly claim that they were under-paid.

Theoretically, if the assets were worth 300 million and Exxon was only paid 250 million, then Exxon would be correct to claim that 50 million was stolen.

Of course, it is hard to have any idea what the right figure is so I am not saying that Exxon's assets were "stolen" or not.

[flamingdem]

3. Since we're not hearing from Exxon

I suppose this was a good deal for them.

[joshcryer]

4. They're patiently waiting for a change in the guard, and the ICSID ruling.

Chavez withdrew from the ICSID, but if another President is in charge when the ICSID ruling comes down, you can bet Exxon will politely ask the new President for the funds.