Venezuelan state oil company PDVSA has, according to Exxon Mobil, been ordered to freeze $12 billion of its overseas assets by a UK court. The case arose last year, when president Chávez's nationalisation drive forced foreign oil operators in Venezuela to either hand over majority control of their operations or leave for good. All companies concerned came to an agreement except Exxon Mobil, which chose to pull out of Venezuela and sought recompense in the international courts.
Friday's ruling has been widely reported but I am yet to read a definitive explanation of what it means for PDVSA. Rafael Ramirez, the PDVSA boss and oil minister, has denied that any ruling has been made against PDVSA and has dismissed the whole episode as some sort of gringo PR conspiracy to destabilise the Venezuelan economy. (I know the Chávez government always comes out with this kind of reasoning, but part of me often thinks, "it's not totally out of the question...")
So was there a ruling or not? If there was, how can Ramirez credibly claim that there wasn't? And if there wasn't, what is Exxon making such a hullabaloo about?
Either way, the announcement has managed to undermine the value of PDVSA's bonds, which fell to an all-time low on Friday, which certainly establishes a clear motive for any Exxon-Bush destabilisation conspiracy.
But then again, could it be the Chávez government once again playing the "external forces" card to justify its own incompetence?
Watch this space.
Saturday, 9 February 2008
$12 billion oil squabble - truth or dare?
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