Venezuela removes Exxon Mobil Corp. from project

[NNN0LHI]

http://abcnews.go.com/Business/wireStory?id=1590725

CARACAS, Venezuela Feb 7, 2006 (AP)— Venezuela has removed Exxon Mobil Corp. from a multibillion-dollar petrochemicals project amid wider differences with President Hugo Chavez's nationalist oil policies.

Exxon planned to team up with Pequiven, the petrochemicals division of state oil firm Petroleos de Venezuela SA, or PDVSA, to spend a combined $3 billion on a project to produce 1 million metric tons a year of ethylene and derivatives.

"On Jan. 20, Pequiven informed ExxonMobil Chemical that Pequiven would not be able to complete Jose Petrochemical Project feasibility study under the terms and conditions agreed in August 2004," Exxon said in a statement on Tuesday. "We have regretfully accepted Pequiven's decision and hope to continue our relationship."

Exxon has been resisting tax hikes and contract changes amid a so-called "re-nationalization" of Venezuela's oil industry. In 2004, Exxon was the only company to publicly speak against a royalty hike on extra-heavy oil production in the Orinoco river basin.

[davidinalameda]

1. so when are we invading

only HALF joking here

[Wilms]

2. Beat me to it! LOL n/t

[killbotfactory]

3. Don't worry, we'll liberate the people of Venezuela

from this freedom-hating authoritarian drug-running anti-semite narco-terrorist!

[Just Me]

4. I reckon the energy lobbyists will be very busy whining to repukes,...

,...about that mean ole' Chavez. :eyes: