Exxon awarded $908 million in Venezuela dispute

[Viva_La_Revolution]

(Reuters) - An international arbitration panel has awarded U.S. oil giant Exxon Mobil Corp (XOM.N) $908 million in compensation for Venezuela's 2007 nationalization of assets, less than 10 percent of what it sought in a dispute that pitted a top global oil company against one of the world's largest oil exporters.

Venezuelan President Hugo Chavez is likely to celebrate the ruling as a vindication of his nationalist confrontation with oil companies, aimed at increasing available funding for state-led anti-poverty programs in the OPEC nation.

The socialist leader, closely allied with Cuba's communist government, has cast Exxon Mobil as an icon of the global capitalism that is the pariah of his self-styled revolution. The limited payout in the claim will reduce potential liabilities at a time when Chavez is boosting state spending to shore up support in the run-up to his October re-election bid.

An Exxon Mobil spokesman said in an emailed message on Sunday that the decision by the International Chamber of Commerce confirmed that Venezuela's state oil company, PDVSA, "does have a contractual liability to Exxon Mobil. The ICC award is for $907,588,000."

http://www.reuters.com/article/2012/01/01/us-venezuela-exxonmobil-idUSTRE80000820120101

[RUMMYisFROSTED]

1. Damn Venezuela for putting their land on top of Exxon's oil!

[LarryNM]

2. +1 n/t

[txlibdem]

4. +100

[DCKit]

5. I'm with you, but Exxon still won.

That pot will pay CEO bonuses for years.

My late mother would have strangled me for buying gas from any Exxon station. Somehow, I don't seem to need that motivation any more.

[EFerrari]

9. Exxon got less than a tenth of what it wanted. They lost big, imo. n/t

[The Magistrate]

10. Exactly, Ma'am....

Not such a bad result, being pretty close to Venezuela's initial 750 millions offer.

[EFerrari]

12. I wonder how much Exxon paid their attorneys.

[RUMMYisFROSTED]

17. Attorneys are staff, not an outside hire.

Unless they're in deep shit.

Which nothing seems to be(deep shit) anymore, companywise.

Odd that.

[EFerrari]

20. You're right, I hadn't thought of that. n/t

[greiner3]

3. So does this mean;

That Venezuela can petition the court to have the verdict lowered by 90%?

It would serve Exxon right as Karma just might exist.

[RUMMYisFROSTED]

7. A "Valdez" callback?

[xxqqqzme]

6. ..."the decision by the

International Chamber of Commerce...". Now there's a impartial panel if ever I saw one....

[The Doctor.]

8. Where are the anti-Chavez people?

Are they here yet?

[Judi Lynn]

11. Reuters: Exxon wins less than expected from Venezuela dispute

Exxon wins less than expected from Venezuela dispute
By Brian Ellsworth and Marianna Parraga

CARACAS | Sun Jan 1, 2012 3:11pm EST

CARACAS (Reuters) - An arbitration panel has awarded U.S. 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.

~snip~
Exxon had sought as much as $10 billion in compensation for its heavy crude upgrading project in the South American country's vast Orinoco belt, which was nationalized by Chavez along with three others. [font color=red]The award is less than the $1 billion that Venezuela offered in compensation in September.[/font]

More:
http://www.reuters.com/article/2012/01/01/us-venezuela-exxonmobil-idUSTRE80000820120101

[sarcasmo]

13. Does a corporation pay taxes on this kind of settlement?

[hughee99]

14. They're probably claiming a loss on this. n/t

[Sgent]

18. It counts as revenue

and goes towards taxable income.

However, corporations pay taxes on income, not revenue, so any expenses (including the book value of assets that are lost) will go against that revenue. Without a lot more information -- including items not released to the public -- it would be impossible to say that this 900 million in revenue will result in X dollars of taxes.

[sarcasmo]

21. Figures, we paid six hundred fifty dollars last year and they will pay nothing.

[BOHICA12]

15. They get $900M and in 10 years they will be back in saddle ...

... due to Venezuela's incompetence in the field. Big win for Exxon.

[Judi Lynn]

16. Venezuela to pay Exxon Mobil only $255 million

Venezuela to pay Exxon Mobil only $255 million
The Associated Press
Published: Monday, January 2, 2012 at 12:42 p.m.
Last Modified: Monday, January 2, 2012 at 12:42 p.m.

Venezuela said Monday it has successfully defended itself in an international arbitration case brought by Exxon Mobil Corp. and will need to pay only $255 million of the more than $900 million awarded to the company.

State oil company Petroleos de Venezuela SA, or PDVSA, said in a statement that debts and court action reduce what it owes under the more than $907 million ruling by the International Chamber of Commerce.

It said Exxon Mobil had previously used international courts to freeze $300 million in Venezuela's U.S. accounts and that the company also has a debt of $191 million relating to financing of an oil project in the country, as well as $160 million that the arbitration tribunal said was due to PDVSA.

PDVSA called it a "successful defense" and said Exxon Mobil had initially demanded about $12 billion in compensation.

More:
http://www.tuscaloosanews.com/article/20120102/APF/1201021051

[boppers]

19. Looks win-win.

Exxon's investment was paid off, plus some interest.