Exxon wins less than expected from Venezuela dispute

January 1, 2012 22:20

CARACAS  - An arbitration panel has awarded US oil giant Exxon Mobil Corp $908 million in compensation for Venezuela's 2007 nationalization of its assets, less than 10 percent of what the company sought in a long legal battle with the OPEC nation.

Venezuelan President Hugo Chavez likely will celebrate the ruling as a vindication of his nationalist confrontation with oil companies aimed at increasing revenue from the industry to boost funding for state-led anti-poverty programs.

But Venezuela still faces another arbitration with Exxon over the nationalization of the Cerro Negro heavy oil project, as well as more than a dozen pending claims from companies such as oil major ConocoPhillips resulting from a wave of state takeovers.

"They must be elated that they got off so cheap. It's certainly a happy new year for Venezuela," said Russ Dallen, head bond trader at investment bank Caracas Capital Markets.

Related Content

Breaking news
April 22, 2018
Death toll from Afghan blast reaches 48


Israel Weather
  • 12 - 22
    Beer Sheva
    15 - 20
    Tel Aviv - Yafo
  • 11 - 19
    15 - 20
  • 17 - 29
    14 - 27