Venezuela ordered to pay Exxon $1.6 billion for nationalization
Source: Reuters
A World Bank arbitration tribunal on Thursday ordered Venezuela to pay Exxon Mobil Corp around $1.6 billion to compensate for the 2007 nationalization of its oil projects in the country.
The amount is far below the up to $10 billion that Exxon had originally sought and the $6 billion at which the World Bank's International Centre for Settlement of Investment Disputes (ICSID) capped the case, excluding a tax claim.
"The Tribunal has found that the expropriation was conducted in accordance with due process, that it was not carried out contrary to undertakings given to the claimants in this respect and that the claimant have not established that the offers made by Venezuela were incompatible with the 'just' compensation requirement of (...) the Bilateral Investment Treaty," ICSID said on its website.
In a brief statement, Exxon said the decision vindicated its view that Venezuela failed to compensate it fairly at the time.
Read more: http://finance.yahoo.com/news/venezuela-must-pay-exxon-1-6-billion-nationalizations-172534967--finance.html
Dont call me Shirley
(10,998 posts)When is somebody going to shut down both of those criminal organizations, WB and EM?
Spitfire of ATJ
(32,723 posts)MADem
(135,425 posts)Maduro doesn't pay his bills...except when he gets threatened by the Chinese. Then he'll cough up some oil.
muriel_volestrangler
(101,361 posts)...
Foreign minister Rafael Ramirez called it a victory for Venezuelan sovereignty over "exaggerated claims", referring to the much higher amount indicated by the Exxon Mobil.
...
A previous decision in 2012 ruled that PDVSA, the state oil company, should pay Exxon $908m.
Venezuela has since paid a portion of that award, which will be taken into account in calculating the balance that Venezuela owes.
http://www.bbc.co.uk/news/business-29561345
MADem
(135,425 posts)newfie11
(8,159 posts)The history of what Exxon has done to countries in SA is appalling.
The distruction and pollution is horrific.
I'd tell em to F**k off.
hack89
(39,171 posts)VZ needs their money, technology and expertise. There are good reasons VZ's oil production has been steadily declining.
LiberalLovinLug
(14,176 posts)In this twisted world, a country is "fined" by some global capitalist self-appointed body for taking back their own resources on their own land, after being pillaged for decades by multinational corporations that were defended by foreign money, influence, and covert operations.
Its like the school bully that beats up and steals a weaker student's lunch every day. Eventually the student grows up and tells the bully that its his own lunch and he can't have it anymore. So the school tells the student, that if he now wants to keep his own lunch he's going to have to pay a "fine" to the bully.
JackRiddler
(24,979 posts)newfie11
(8,159 posts)roody
(10,849 posts)hack89
(39,171 posts)VZ desperately needs help from the large oil companies to modernize their oil infrastructure and develop new sources. Their oil production has been steadily declining for a decade and the decline in oil revenue is killing their economy.
FLPanhandle
(7,107 posts)I wouldn't trust that government enough to invest billions of dollars.
FLPanhandle
(7,107 posts)No wonder they won't appeal. $1.6 billion compared to $10 billion. I'm sure Exxon overstated the value but still a nice settlement.
However, I doubt they ever pay.
Orsino
(37,428 posts)...for Exxon to declare war over.
JackRiddler
(24,979 posts)The headline and some of the comments are obscuring that. Read the story.
"The Tribunal has found that the expropriation was conducted in accordance with due process, that it was not carried out contrary to undertakings given to the claimants in this respect and that the claimant have not established that the offers made by Venezuela were incompatible with the 'just' compensation requirement of (...) the Bilateral Investment Treaty," ICSID said on its website.