Venezuela Halts Oil Sales to Exxon Mobil

RightinNYC · 02-12-08, 09:18 PM

Venezuela Halts Oil Sales to Exxon Mobil: Financial News - Yahoo! Finance

So they went through with it. OH NOES!!!

Quote:

Exxon Mobil is challenging the Chavez government's nationalization of one of four heavy oil projects in the Orinoco River basin, one of the world's richest oil deposits.

A British court issued an injunction last month temporarily freezing up to $12 billion of PDVSA's assets. Exxon Mobil also has secured an "order of attachment" from U.S. District Court in Manhattan on about $300 million in cash held by PDVSA. A hearing to confirm the order is scheduled for Wednesday.

Other oil companies including Chevron Corp., France's Total, Britain's BP PLC and Norway's StatoilHydro ASA have negotiated deals with Venezuela to continue as minority partners in the nationalized projects. ConocoPhillips and Exxon Mobil balked at the government's tougher terms and have been in compensation talks with PDVSA.

Earlier Tuesday at an energy conference in Houston, Exxon Mobil senior vice president Mark Albers declined comment on any court proceedings with Venezuela, though he said the company is eager to negotiate fair compensation for its assets.

Exxon Mobil is taking the dispute to international arbitration, to which Venezuela has agreed. Its legal actions essentially seeks to corral Venezuelan assets ahead of any decision by the arbitration panel.

...

Meanwhile, Venezuelan state television has begun airing short anti-Exxon segments, with a message appearing on the screen in red text reading: "Exxon Mobil turns oil into blood."

Only one problem though - The vast majority of Venezuelan oil can't be refined anywhere other than the US because other places don't have the proper facilities.

Guess Chavez is about to find out that you can't just break contracts, steal billions of dollars from other people, and then get away with it.

Navy Pride · 02-13-08, 01:49 AM

Quote:

Originally Posted by RightinNYC

Venezuela Halts Oil Sales to Exxon Mobil: Financial News - Yahoo! Finance

So they went through with it. OH NOES!!!

Only one problem though - The vast majority of Venezuelan oil can't be refined anywhere other than the US because other places don't have the proper facilities.

Guess Chavez is about to find out that you can't just break contracts, steal billions of dollars from other people, and then get away with it.

I hope your right........I figured it would be the Arabs that cut off the spigot............

ashurbanipal · 02-13-08, 08:35 AM

Actually, I believe there are refineries in Canada, China, and the FSU 'stans that can handle most Venezuelan crude. I think you may be thinking of the Orinoco tar sands.

Gipper · 02-13-08, 10:32 AM

It's oil, I know. It's important to America, I know.

Still, anyone with a shred of intellect in the business world knows that Chavez has gone nucking futs with expropriation over the past few years. Why would anyone make investments in or with Venezuela?

What Chavez says doesn't bother me. What he does, however, infuriates me. He should be deposed for simply that reason. He has literally stolen tens of billions from private entrepreneurs.

dixon76710 · 02-13-08, 11:40 AM

Quote:

Originally Posted by ashurbanipal

Actually, I believe there are refineries in Canada, China, and the FSU 'stans that can handle most Venezuelan crude. I think you may be thinking of the Orinoco tar sands.

Moreover, the United States is Venezuela's biggest market, and Venezuelan crude oil is of such low quality that few of the world's refineries outside the United States can use it. One firm well-suited for using Venezuelan crude is U.S.-based Citgo, a unit of PDVSA. Chávez may talk of cultivating new customers by selling to China, but China doesn't have a refinery capable of handling the heavy crude.
washingtonpost.com

dixon76710 · 02-13-08, 11:42 AM

Quote:

Originally Posted by RightinNYC

Venezuela Halts Oil Sales to Exxon Mobil: Financial News - Yahoo! Finance

So they went through with it. OH NOES!!!

Only about 90,000 barrells a day goes to Exxon. Venezuela sends 1.3 MILLION barrels a day to the US.

RightinNYC · 02-13-08, 12:27 PM

Quote:

Originally Posted by ashurbanipal

Actually, I believe there are refineries in Canada, China, and the FSU 'stans that can handle most Venezuelan crude. I think you may be thinking of the Orinoco tar sands.

Quote:

Oil accounts for 90 percent of Venezuela's export earnings and half of the government's revenue. Chávez has tapped into the revenue of the state oil company, Petroleos de Venezuela, to finance domestic food and fuel subsidies, social programs, the Fund for National Development, and a $1.7 billion aid program for Cuba and other countries in the Caribbean and Latin America.

Moreover, the United States is Venezuela's biggest market, and Venezuelan crude oil is of such low quality that few of the world's refineries outside the United States can use it. One firm well-suited for using Venezuelan crude is U.S.-based Citgo, a unit of PDVSA. Chávez may talk of cultivating new customers by selling to China, but China doesn't have a refinery capable of handling the heavy crude.

washingtonpost.com

RightinNYC · 02-13-08, 12:28 PM

Quote:

Originally Posted by dixon76710

Moreover, the United States is Venezuela's biggest market, and Venezuelan crude oil is of such low quality that few of the world's refineries outside the United States can use it. One firm well-suited for using Venezuelan crude is U.S.-based Citgo, a unit of PDVSA. Chávez may talk of cultivating new customers by selling to China, but China doesn't have a refinery capable of handling the heavy crude.
washingtonpost.com - nation, world, technology and Washington area news and headlines

Beat me to it.

danarhea · 02-13-08, 05:10 PM

Quote:

Originally Posted by RightinNYC

Venezuela Halts Oil Sales to Exxon Mobil: Financial News - Yahoo! Finance

So they went through with it. OH NOES!!!

Only one problem though - The vast majority of Venezuelan oil can't be refined anywhere other than the US because other places don't have the proper facilities.

Guess Chavez is about to find out that you can't just break contracts, steal billions of dollars from other people, and then get away with it.

Actually, what is going to happen is that Chavez will sell his oil to someone else, who in turn, will sell it to Exxon-Mobil. He really isn't accomplishing anything here.

Kandahar · 02-13-08, 05:24 PM

I'm glad he went through with it. Now everyone will know what an empty and stupid threat it was. This will have absolutely NO effect on gas prices.