Venezuela will pay $ 908 million for the expropriation of Exxon.
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Venezuela will pay $ 908 million for the expropriation of Exxon.

Maracaibo : Venezuela | Jan 02, 2012 at 7:37 AM PST
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Why is Venezuela a threat?

"An international court punished with that amount in the state oil company PDVSA.The country is ruled by Hugo Chavez faces 20 lawsuits for their nationalization plan."

The Court of Arbitration of International Chamber of Commerce, based in New York, condemned the Venezuelan state oil company PDVSA will pay the sum Exxon Mobile Corp millionaire, according to the daily Wall Street Journal. The sum is barely one-tenth of the 10,000 million dollars that claimed the firm to submit its request for arbitration in 2007, and is much less than the 6,000 million dollars today called Exxon.

Chavez's government decided in 2007 to regain sovereignty over oil resources by creating joint ventures in which PDVSA has always at least 60% of the shares. In addition to assets seized, Exxon seeks compensation for the tax increases the extraction of crude oil ("royalties") that the Venezuelan government established in 2004.

This is not the only case that Venezuela faces as a result of the raid of expropriations that it has completed the Bolivarian leader in more than 12 years of government.

Only in the International Centre for Settlement of Investment Disputes (ICSID) under the World Bank, Venezuela has opened twenty arbitrations:

ConocoPhillips: demand a compensation of 31mil million for the nationalization of two projects in the Orinoco and two exploration agreements.

Cemex and Holcim: Between 2008 and 2009, after Mexico's Cemex and Holcim of Switzerland failed to reach agreements with Venezuela, ICSID arbitration requested by the expropriation of the cement industry. They require 2,000 million dollars.

Gold Reserve: In 2009, Canadian mining arbitration requested the recall of two gold projects. Your request for compensation in August rose to 2,100 million dollars.

Tidewater: After waiting for months to compensate Venezuela 76 oil service companies who expropriated in May 2009, the U.S. requested arbitration Tidewater to recover the value of their boats, estimated at approximately $ 45 million.

Universal Compression Holdings International: The company, acquired by U.S. company Exterran, was another affected by the expropriations of 2009. They demand 400 million dollars.

Tenaris: Tenaris and Talsa steelmakers, controlled by Argentina's Techint , requested arbitration against Venezuela over the nationalization in 2009 of one of its subsidiaries, Matesi. In a similar case, Venezuela agreed to pay 2,000 million dollars.

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Venezuela will pay $ 908 million for the expropriation of Exxon.
"An international court punished with that amount in the state oil company PDVSA.The country is ruled by Hugo Chavez faces 20 lawsuits for their nationalization plan." Image Source creative Comons:(http://farm3.staticflickr.com/2175/2540266876_6c28222c51.jpg)
Vicky247 is based in Lahore, Punjab, Pakistan, and is a Reporter on Allvoices.
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