Assets taken over by Hugo Chavez, Exxon was just able to Redress the 10%
Exxon Mobil Corp bite the fingers. The Arbitration Panel ordered punitive damages of only US $ 908 million for the nationalization of assets carried President Hugo Chavez. Compensation that means less than 10% of the value of the claim of Exxon.
A spokesman for Exxon said, the International Chamber of Commerce or the International Chamber of Commerce (ICC) has said STATE-OWNED Venezuela petroleum, PDVSA has contractual obligations to Exxon Mobil.
"The ICC appreciates (the value of liabilities) of US $ 907.588.000," explained a spokesman for Exxon in their email as quoted from Reuters, Monday (2/1/2012).
The decision was made by a court in Paris which is the headquarters of the ICC. These institutions refer to themselves as the world's leading institutions for resolving cross border disputes and claims to have handled hundreds of cases per year since 1999.
Exxon had previously asked for compensation of up to US $ 10 billion for projects in Ocinoco the nationalized by President Chavez. The value of the obligation is also just less than the compensation offered Venezuela in September at a cost of US $ 1 billion.
In addition to the claims of the ICC, Exxon also has filed arbitration to the International Centre for Settlement of Investment Disputes (ICSID) to the same issue. Exxon spokesman said the case was to be debated at next month even though the date has not yet been ascertained.
Venezuela also will face the possibility of another arbitration to nationalization project Cerro egro and dozens of pending claims of large oil companies such as ConocoPhillips as a number of nationalization are great.
The ICC's decision means approaching an investment value of Exxon for the project was about US $ 750 million. But Exxon repeatedly asked for compensation for the increase in affirming the value of the project.
"Exxon took a risk when they want to go. I'm sure they expect more than just make their money back, "said Russ Dallen, a bond brokerage head of Capital Markets in Caracas.
