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Judge: Exxon Mobil Likely to Win Dispute
AP via SFGate ^ | 2/13/8 | LARRY NEUMEISTER, Associated Press Writer

Posted on 02/13/2008 3:52:04 PM PST by SmithL

NEW YORK, (AP) -- A federal judge in Manhattan on Wednesday confirmed the freezing of $300 million in cash held by Venezuela's state-run oil company, finding it probable that Exxon Mobil Corp. will win its legal battle against the company.

Exxon Mobil is challenging Petroleos de Venezuela SA, or PDVSA, over compensation for the nationalization of one of four heavy oil projects in the Orinoco River basin, one of the world's richest oil deposits.

Irving, Texas-based Exxon Mobil, the world's largest publicly traded oil company, is seeking to freeze billions in Venezuelan assets in the United States and Europe to guarantee a payoff in the event it wins a decision by an international arbitration panel.

U.S. District Judge Deborah A. Batts on Wednesday confirmed the "order of attachment" on the $300 million in Venezuelan cash after listening to arguments from lawyers for both oil companies.

A British court issued an injunction last month temporarily freezing up to $12 billion of PDVSA's assets.

Venezuelan President Hugo Chavez rattled international oil markets this week by threatening to cut off all oil supplies to the United States in response Exxon Mobil's legal challenges. On Tuesday, PDVSA said it would stop selling oil to Exxon Mobil, although it was not clear how much crude that would affect.

Venezuelan Oil Minister Rafael Ramirez, who also heads PDVSA, on Wednesday vowed to mount "a defense of the nation's interests" in the battle with Exxon Mobil.

U.S. State Department spokesman Sean McCormack, meanwhile, said the United States supports the U.S. oil company's efforts to seize assets to get a "just and fair compensation."

Venezuela did not immediately respond to the judge's decision in New York.

(Excerpt) Read more at sfgate.com ...


TOPICS: Business/Economy; Extended News; Foreign Affairs; Government
KEYWORDS: exxonmobile; hugochavez; venezuela

1 posted on 02/13/2008 3:52:20 PM PST by SmithL
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To: SmithL

Exxon is in a deal to ship LNG down the Dalton Highway to Fairbanks. As it is, Fairbanks gets what little natural gas it gets from Anchorage, also LNG. The road from Prudhoe is a little more adventurous than the road from Anchorage.


2 posted on 02/13/2008 3:56:47 PM PST by RightWhale (Clam down! avoid ataque de nervosa)
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To: SmithL

Exxon is in a deal to ship LNG down the Dalton Highway to Fairbanks. As it is, Fairbanks gets what little natural gas it gets from Anchorage, also LNG. The road from Prudhoe is a little more adventurous than the road from Anchorage.


3 posted on 02/13/2008 3:57:17 PM PST by RightWhale (Clam down! avoid ataque de nervosa)
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To: SmithL

Would be lovely if we backed Exxon with some military force as well. Latin America needs a good taste of the Monroe Doctrine.


4 posted on 02/13/2008 3:57:22 PM PST by utherdoul
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To: SmithL

What’s it gonna take to become energy independent?

The rest of OPEC is just as bad as this clown...they just don’t voice their hate so openly...face it: right now we are paying tribute for our inability to power our own needs.


5 posted on 02/13/2008 4:01:20 PM PST by eleni121 (+ En Touto Nika! By this sign conquer! + Constantine the Great)
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To: utherdoul
Latin America needs a good taste of the Monroe Doctrine.

The Monroe Doctrine was that Europe (and the rest of the Eastern Hemisphere) should stay out of the Western Hemisphere. Since Venezuela is in the Western Hemisphere, it really doesn't apply. But I understand what you're saying and we do need to show Chavez that we won't be bullied by a pissy little socialist like him.

6 posted on 02/13/2008 4:36:23 PM PST by VRWCmember (McCain 2008 - If it's inevitable, you might as well lay back and try to enjoy it.)
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To: utherdoul
Latin America needs a good taste of the Monroe Doctrine.

The Monroe Doctrine was that Europe (and the rest of the Eastern Hemisphere) should stay out of the Western Hemisphere. Since Venezuela is in the Western Hemisphere, it really doesn't apply. But I understand what you're saying and we do need to show Chavez that we won't be bullied by a pissy little socialist like him.

7 posted on 02/13/2008 4:36:46 PM PST by VRWCmember (McCain 2008 - If it's inevitable, you might as well lay back and try to enjoy it.)
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To: eleni121
right now we are paying tribute for our inability unwillingness to power our own needs

We have the technology and the capability. What we don't have is permission to tap into oil resources or to build nuclear power facilities.

8 posted on 02/13/2008 4:38:11 PM PST by FoxInSocks
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To: VRWCmember; utherdoul

I’d be happy with the Reagan Doctrine.


9 posted on 02/13/2008 4:40:55 PM PST by Larry Lucido
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To: Larry Lucido
I’d be happy with the Reagan Doctrine.

AGREED!

10 posted on 02/13/2008 4:43:06 PM PST by VRWCmember (McCain 2008 - If it's inevitable, you might as well lay back and try to enjoy it.)
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To: FoxInSocks

unwillingness to power our own needs


Of course! In a perverted way Chavez and OPEC thugs inc. may be provoking that unwillingness to become a willingness instead.


11 posted on 02/13/2008 4:48:02 PM PST by eleni121 (+ En Touto Nika! By this sign conquer! + Constantine the Great)
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To: SmithL

Great. Next year I get to pay $5.00 per gallon for heating oil.

I bet all those grateful little old ladies and welfare rats that got free oil from Hugo up here in the Northeast will be singing an entirely different tune next winter so Hillary or Obama can be voted in to save the day, raise my taxes and make up the difference.

Exxon Mobile will still make billions (and no I do not begrudge them their profit margin, I am a conservative capalist at heart) while our ‘sensitive’ environmentalist & energy lobbyist convince Washington politicians of the evils of alternative energy, offshore drilling, ANWR and nuclear power. The French Revolution part II on American soil is inching closer every day.


12 posted on 02/13/2008 4:54:38 PM PST by quant5
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To: utherdoul

Nah, the majority of the people in Venezuela thinks Hugo is a tard and voted accordingly. They are also some of the most fiery of the latino hothead populations and know the true meaning of the word revoluton. Let him shut it off, I’ll pay extra dough for my shitty sour crude heating oil and save me the tax dollar cost of another major conflict this decade. We’ll each pay a lot less in the end and guess what? We can no longer afford to be the world’s policemen.


13 posted on 02/13/2008 4:58:24 PM PST by quant5
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To: eleni121

BINGO


14 posted on 02/13/2008 4:59:37 PM PST by quant5
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To: SmithL
This could be the beginning of the end for hugo. The US is about the only country that wants his high-sulfur crude oil.
15 posted on 02/13/2008 5:01:25 PM PST by ozzymandus
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To: ozzymandus
"This could be the beginning of the end for hugo. The US is about the only country that wants his high-sulfur crude oil."

Yup. Our refineries are about the only ones that can even process his tar-oil. We get 10-14% of our oil imports from them while that represents 70-80% of their exports.

Guess who loses?

16 posted on 02/13/2008 6:21:47 PM PST by blam (Secure the border and enforce the law)
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To: blam

I’d bet the Chinese would be more than happy to build a couple of refineries that can handle sulfurous tarry crude.


17 posted on 02/13/2008 9:19:01 PM PST by VanShuyten ("Ah! but it was something to have at least a choice of nightmares.")
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To: quant5
Exxon Mobile (sic) will still make billions (and no I do not begrudge them their profit margin, I am a conservative capitalist at heart)

Exxon-Mobil made about 10.9% profit margin from revenue of about 373 billion dollars ( http://finance.yahoo.com/q/ks?s=XOM). This is an average, even small, profit margin. Remember oil has been over sixty dollars for some time now . XOM is the largest segment of what was the Standard Oil Trust, the largest industrial corporation ever. The pieces of the Standard Oil legacy still constitute, if aggregated, the largest industrial unit in the world.

Don't let big numbers, or the liberals who report those numbers, make you say dumb things.

18 posted on 02/13/2008 10:31:37 PM PST by backslacker (Thou shall worship the Lord thy God, and him only shalt thou serve. --Luke 4:8b)
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To: VRWCmember; utherdoul

Correct. Which is why the Brits were in violation of both the Monroe Doctrine AND the Roosevelt Corollary when they invaded the Malvinas.


19 posted on 02/13/2008 10:35:32 PM PST by Clemenza (Ronald Reagan was a "Free Traitor", Like Me ;-))
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To: Clemenza

The Falkland Islands were british to begin with. Monroe doctrine ended further colonization. (lets not forget those french colonies to the east of canada.)


20 posted on 02/14/2008 5:52:01 AM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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