Venezuela says all Chalmette oil sent to China
Venezuela is sending to China all the oil it previously shipped to a US refinery jointly owned with Exxon Mobil amid a legal battle between the OPEC nation and the US oil giant, Energy Minister Rafael Ramirez said on Friday.
“With respect to the shipments, we put them at China’s disposal,” Ramirez told reporters. “All of it.” Exxon and Venezuela have been in dispute over supplies to the Louisiana-based Chalmette refinery since Exxon won court orders freezing $12 billion in Venezuelan assets as part of a legal battle over compensation for Exxon assets Venezuela nationalized in 2007.
State oil company PDVSA halted supplies to Chalmette, a 50-50 joint venture that can process about 193,000 barrels per day of crude, after Exxon began rejecting some of the cargoes that Venezuela destined for the refinery. Ramirez said PDVSA rerouted the supplies in protest, which he said were meant to pressure Venezuela as part of an international arbitration over the 2007 nationalization of the Cerro Negro heavy oil project that Exxon once ran.
Exxon wants at least $5 billion in compensation, though PDVSA says it is due less than $1 billion. A London court this month lifted one of the freeze orders, though Exxon still has similar injunctions in Netherlands and Netherlands Antilles courts. Venezuelan President Hugo Chavez is keen to export more oil to Asia to reduce traditional dependence on United States energy markets. (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.