Venezuela Vs Exxon Mobil: PDVSA wins unfreezing oil assets at London court (updated II)

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Venezuela Vs Exxon Mobil: PDVSA wins unfreezing oil assets at London court

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Caracas, Venezuela, 18 March, 2008. Venezuelan Minister for Oil and President of PDVSA, Rafael Ramirez, has announced his country won an ordeal at a London court. Thus, it has managed to reverse a previous court ruling that backed the Exxon Mobil attempt to freeze US$12 bn of PDVSA assets. British Judge Paul Walker will submit the full rulling on Thursday but the Venezuelan Oil Minister has reassured the country of a win.  

Last year, Venezuelan government nationalized one of Exxon Mobil projects at the Orinoco basin. Unlike other foreign oil companies, Exxon Mobil did not accept the compensation scheme offered by Venezuela and resorted to international arbitration. While the compensation case was being processed at the International Centre for settement of Investments Disputes (ICSID) , Exxon Mobil started alternatives means of pressure. On January 24, 2008, Exxon Mobil managed to get a preliminary ruling from a London court freezing the assets of PDVSA for US$12bn. Venezuela then said Exxon Mobile had resorted to "legal terrorism".  

For now, the ICSID arbitration case between Venezuela and Exxon Mobile continues at New York at its own pace. It is unclear whether the action started by Exxon Mobile would have any negative effect on the arbitration case.  Venezuela is now considering to demand Exxon for the freezing action. Exxon Mobile has accepted to pay US$760000 for the legal costs of the freezing case and would not appeal the ruling.

During a press conference in Caracas, Venezuelan Minister for Oil, Rafael Ramirez, explained some public aspects of the ruling. He said the British judge had confirmed the state nature -not private - of PDVSA as well as the responsible dealings of its oil affairs. Exxon Mobil had lied to the British court when it claimed PDVSA was not a state company and would try to prevent honouring its compromises, Ramirez added. he explained how the local opposition and Exxon Mobil had initiated a disinformation campaign against PDVSA. Finally, Ramirez stated Venezuela could now calmly negotiate the arbitration with Exxon Mobil.   According to Aljazeera, the British court stated that there was no international fraud involved that would justify the freezing of assets worldwide.

PS:During an interview at Telesur last night, Minister Ramirez commented on PDVSA relations with Conoco. He said that both companies keep amicable relations despite underoing an arbitration process. The british decision is a meaninful precedent for other countries, Ramirez added.

Sources: VTV, Globovision, Telesur, El Universal, ALjazeera, Unioradio, YVKE Mundial, BBC Mundo, El Comercio, Prensa Latina, RNV,

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