ExxonMobil seeking arbitration for Cerro Negro

Eric Watkins
Senior Correspondent

LOS ANGELES, Sept. 13 -- ExxonMobil Corp. last week filed a request for arbitration over Venezuela's nationalization of the Cerro Negro heavy oil project.

The firm, which filed the arbitration request with the International Center for Settlement of Investment Disputes, held a 41.67% interest in the project before Venezuela expropriated it in June.

The appropriation resulted from a nationalization decree issued by Venezuela's President Hugo Chavez earlier this year.

Venezuela took majority control of country's privately run oil projects on May 1 and gave the companies until June 26 to decide to accept new terms as junior partners.

ExxonMobil and ConocoPhillips rejected the offer, while Chevron Corp., BP PLC, Total SA, and Statoil ASA accepted.

Last week, Venezuela's tax authority Seniat said it had received or been promised payments from two state-dominated joint venture firms after imposing large back-tax bills on recently nationalized heavy oil development projects, including Cerro Negro (OGJ Online, Sept. 6, 2007).

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

ExxonMobil outlines 2014 production plans

03/05/2014

ExxonMobil Corp. said it expects to start production at 10 major projects this year, adding 300,000 net boe/d of net capacity.

ExxonMobil starts production from Damar gas field offshore Malaysia

02/14/2014 ExxonMobil Exploration & Production Malaysia Inc. reported the startup of natural gas production from Damar field, which lies in 55 m of water ...

ExxonMobil expands Permian acreage, enters Utica agreement

02/03/2014 XTO Energy Inc., a subsidiary of ExxonMobil Corp., has agreed to fund development to gain operating equity in 34,000 gross acres in the liquids-ric...

Old onshore concession ends in Abu Dhabi

01/22/2014 Abu Dhabi National Oil Co. (ADNOC) has become the sole shareholder of Abu Dhabi Co. for Onshore Oil Operations (ADCO) after the expiration this mon...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected