Exxon wins freeze on $12 billion of Venezuelan assets

Reuters ^ | Feb 8, 2008 | Michael Erman

[Tigen]

NEW YORK (Reuters) - Exxon Mobil Corp. has won court orders freezing up to $12 billion in Venezuelan assets around the world as it fights for compensation for operations lost to President Hugo Chavez's nationalization drive.

The largest U.S. company sought the asset freeze to guarantee repayment should it win arbitration over the Cerro Negro heavy oil project.

The move is the boldest challenge yet by an international oil major against any of the governments around the world that have moved to increase their holds on natural resources as energy and commodity prices have soared.

"To me it sounds like a very aggressive tactic," said Stephen Zamora, professor of international law at the University of Houston Law Center.

"I can't really say that I'm aware this has been used in other investment disputes. They may be trying to get the government to settle."

[Tigen]

chavez is going to be acting out alert

[the invisib1e hand]

chavez is going to be acting out alert

someone in his cabinet will probably nationalize a pharmaceutical company to make sure he has enough meds.

[Mad_Tom_Rackham]

Bravo!

[IllumiNaughtyByNature]

Let him act out. Like Iran, his tirades draw the ire of the people and will lead to his downfall. IMO.

[Ditto]

"They may be trying to get the government to settle."

Congratulations to Reuters. They are the lucky winners of tonight's grand prize.

[catfish1957]

The best part of this event is that his Govt. Bonds dropped in rating, meaning several Billions additionally lost on backing and incentives.

Hey Hugo....Got junk in the trunk?...ha ha ha ha

[microgood]

It appears we have learned a few new tricks since Cuba.

[Brad from Tennessee]

[PDVSA is already facing growing debt and increasing operational problems that analysts attribute to underinvestment caused by the company’s massive contributions to Chavez’s social programs.]

Running the foreign companies out of Venezuela may have had more to do with corruption than ideology. Exxon and others had the technology and cash Venezuela needs to exploit the oil but with the partnership came accounting and accepted business practices. Chavez may have killed the geese that lay the golden eggs.

Though the State Department and CIA may have lost their charter and talent for destabilizing people like Chavez, Exxon may be up to it.

[lowbridge]

bump

[Southack]

Instead of being assassinated, Chavez is going to be ridiculed out of Office as a failure.

[pennboricua]

The current makeup of the entwined global financial structure will prove very difficult for Dictators to pull such stunts.
This should hasten the overthrow of this idiot by the Venezuelans.

[egginanest]

Poor Hugo must be smelling the stench of sulfur. Again.

[freekitty]

Good for Exxon. I am proud of them.

[Brad from Tennessee]

Amen!

[hosepipe]

[ Exxon wins freeze on $12 billion of Venezuelan assets ]

Hugo Chavez---->> DOH!....

[denydenydeny]

"To me it sounds like a very aggressive tactic," said Stephen Zamora, professor of international law at the University of Houston Law Center.

That line made me laugh. Chavez starting the process by nationalizing (stealing) billions from Exxon wasn't "aggressive"?

[Trajan88]

Re: “someone in his cabinet will probably nationalize a pharmaceutical company to make sure he has enough meds.”

Actually ol’ Hugo won’t have to push that button... he’ll just resort to calling up his P.A.L. in Boliva (Evo Morales) to ship over some cocoa leaves.

[Texas Mulerider]

Exxon suing Chavez? Heads will be exploding at DU.

[biff]

Looks like Hugo may end up driving a Yugo.

[Thermalseeker]

Running the foreign companies out of Venezuela may have had more to do with corruption than ideology.

Since Chavez's ideology is Socialism and Socialism is and always has been one of the definitions of corruption, the foreign companies are essentially being run out by both.

Socialism only truly empowers those at the very top. A point that is lost on a vast majority of DemocRat myrmidons.....