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Venezuela Denies Oil Assets Frozen
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Commentators on state television said they believe there is a closeness between the company and Chavez's archenemy _ President Bush's administration.
According to documents filed last month in the U.S. District Court in Manhattan, Exxon Mobil has secured an "order of attachment" on about $300 million in cash held by PDVSA. A hearing to confirm the order is scheduled in New York for Feb. 13.
In a Jan. 24 "freezing injunction" by a British High Court, the court said that "until the return date or further order from the court," PDVSA "must not remove from England or Wales any of its assets which are in England or Wales up to the value of $12 billion."
The court also said that if PDVSA disobeys the order, it could be held in contempt of court and be fined or have assets seized.
The credit rating agency Fitch Ratings said the British court order would "have a minimum impact on the company's day-to-day operations, as well as its near-term credit quality and financial flexibility." The agency noted that most of PDVSA's assets are located in Venezuela and the United States, where the company has refineries.
But Fitch Ratings also noted that the outcome of the arbitration process with Exxon Mobil remains uncertain and that "a negative outcome of the arbitration could pressure the credit profile of PDVSA."
Other major oil companies including U.S.-based Chevron Corp., France's Total, Britain's BP PLC, and Norway's StatoilHydro ASA have negotiated deals with Venezuela to continue on as minority partners in the Orinoco oil project.
ConocoPhillips and Exxon Mobil, however, balked at the tougher terms and have been in compensation talks with PDVSA.
Ramirez said Venezuelan officials have had "very important meetings" with ConocoPhillips Chairman Jim Mulva and have made progress toward an agreement. "I think we're on a path to achieving it," Ramirez said.
As for the dispute with Exxon Mobil, Ramirez said "we're going to value fairly what would be its compensation, or not if that be the case."
