ExxonMobil, ConocoPhillips refuse to sign Venezuela deals

[Ghost in the Machine]

By Fabiola Sanchez, Associated Press
CARACAS, Venezuela — ExxonMobil (XOM) and ConocoPhillips (COP) refused to sign deals Tuesday that would let them keep pumping oil under tougher terms in Venezuela, the government's oil company said.
Petroleos de Venezuela, or PDVSA, said Tuesday that it would sign with only four of the six major oil companies involved in lucrative ventures in the Orinoco River region — U.S.-based Chevron (CVX); Britain's BP (BP), France's Total (TOT) and Norway's Statoil (STO).

PDVSA said it was taking ownership of ConocoPhillip's 50.1% stake in the Petrozuata project, and the La Ceiba block under development near western Lake Maracaibo that is 50% owned by ExxonMobil.

"On the basis of the negotiations conducted, the former strategic association Petrozuata and the La Ceiba ... block pass to the total control of PDVSA," the state-owned oil company said.

PDVSA's stakes in the other four Orinoco joint ventures will rise to an average of 78%, from previous stakes ranging from 30% to 49.9%, the state company said.

http://www.usatoday.com/money/industries/energy/2007-06-26-oil-venezuela_N.htm?csp=34

[BlackHawk706867]

1. Cool.... and F**** Exxon anyway... I think that President Hugo is doing what..

is best for the country and telling GWB and Administration to go F*** Them selves colectively.... Works for me...

ww

[EFerrari]

2. Good. Kick their vampire @sses out of Venezuela. n/t

[IChing]

3. ExxonMobil & ConocoPhillips are just serving their shareholders how dare Venezuela

Argue against them! These companies obviously are out for the interests of the poor and the middle class!
Man, they are just trying to help global warming and the american citizen that has to drive every day to work.

They have never taken excessive profits, only the fair market value. Time to bring home the National Guard, we don't
need them in the deserts of Iraq, in New Orleans or protecting our States from natural disasters........I smell the tropics,
and another deployment and a new mission.

[TahitiNut]

4. XOM fell a point, from 82.89 to 81.82 at the close after the news.

Clearly, however, insiders knew far earlier. The stock has been dropping from last Tuesday's high of 86.36.

http://finance.google.com/finance?q=XOM

COP has shown an almost identical decline to 75.80 at close today, from a high last Tuesday of 80.69.

http://finance.google.com/finance?q=COP

[IChing]

5. The most profit of any companies in the history of the world

it could be argued even comparing it to the money that early and late
colonist "private" companies achieved in slaves, gold and rum.

I am sure they are looking at the present currency and stock value it is traded in
relative terms.

[TahitiNut]

10. XOM Net Income/Employee (TTM) $491,839

Assuming the average employee compensation is around $50K, this portrays an obscene "income redistribution" and reflects the oligopolistic entitlements (force of law) upon which the industry relies.

[EFerrari]

6. kick

[Selatius]

7. They're hoping Venezuela breaks and gives them more concessions.

That's my best guess, anyway.

[aquart]

8. Well, good luck with that.

I don't think Chavez likes them.

[Kokonoe]

9. Their just going to to keep pumping oil anyway.

Who cares about Exxon Mobil (XOM) and Conoco Phillips (COP). Did anybody hear, BIG BROTHER 8 is starting. OK lets have a minute of silence in support of big oil. thats enough, I feel better now.

[taught_me_patience]

11. What is the difference between this and theft?

The offer for the stake was well below fair market value and COP and XOM refused to make this bad deal. So Chavez simply seizes the assets? This is theft plain and simple. Believe me... oil production from the region will decline because of this move. I hope that COP and XOM sue to gain control of CITGO's U.S. based assets.

[Scriptor Ignotus]

12. that seems to be my take on it too

although if production decreases they may still earn more revenue, depending on the increase of their stake and if global prices rise.

Long-term it could be the wise move as far as Venezuela's concerned. Short-term, probably not so much.