UK court rules against Exxon in Venezuela asset freeze case

19 March 2008

Mumbai: A London court today lifted an injunction against Venezuela's state oil company, Petroleos de Venezuela SA (PDVSA), that froze $12 billion of Venezuelan assets of oil major Exxon Mobil. (See:  Exxon Mobil accused of judicial terrorism as it wins court verdict for freezing $12 billion of Venezuelan assets)

The court dissolved the injunction as the dispute was not connected to the UK Exxon.

Exxon Mobil, the world's largest private sector oil company by market cap, is battling in arbitration to win compensation for an oil field President Hugo Chavez's government seized last year.

''The injunction granted against the defendant, Petroleos de Venezuela, should be discharged,'' Justice Paul Walker ruled.

The judge said he would explain the ruling on Thursday.

Exxon must pay 380,000 pounds ($767,000) of PDVSA's legal fees within 21 days, said Gordon Pollock, a lawyer for PDVSA. He said his client would also seek compensation for damages suffered because of the freeze.