Venezuela ordered to pay $1.6 billion to Exxon
International arbitration panel rules against South American nation in oil project complaint.
An international arbitration panel has ordered Venezuela’s socialist government to pay $1.6 billion to ExxonMobil for the seizure of a major oil project in the South American country and other losses.
Exxon said in a statement that the decision by the World Bank’s investment dispute panel confirmed that Venezuela failed to provide fair compensation for the Cerro Negro project it seized in 2007 after the company failed to enter in a partnership proposed by state-owned PDVSA.
President Nicolas Maduro’s government is currently battling more than 20 similar demands at the World Bank by foreign companies.
Analysts said that, rather than shun the ruling, Venezuela is likely to appeal to buy time while it negotiates more favorable payment terms so as not to lose access to international credit markets on which it depends to finance spending on social programs.
The International Chamber of Commerce previously awarded Exxon more than $900 million in damages for the expropriation of Cerro Negro.
Source: Usatoday- Venezuela ordered to pay $1.6 billion to Exxon
