Venezuela reaches deal with Eni; disputes Exxon's oil claims

16 February 2008

Mumbai: Venuezela has reached a deal with Eni SpA compensating the Italian oil company for the seizure of the Dacion oil field, even as Veneuzuelan government has said US energy major Exxon Mobil's investments in Veneuzuela's energy sector were worth just 1.2 million against the company's claim of $12 million.

Dacion, worth an estimated $839 million, was seized in April 2006 by the government of Venezuelan President Hugo Chavez. Eni had operated the field under a service agreement with Venezuela's state oil company Petroleos de Venezuela SA, or PDVSA.

The government ordered the seizure after Eni refused to renegotiate its operating contract for the field.

Exxon is seeking $12 billion (£6.1 billion) in compensation from PDVSA after its interests were nationalised last year.

In fact, Exxon succeeded to freeze $12 billion of PDVSA assets the world over under different court orders.

"They ask for too high an amount for their compensation," said Veneuzuelan oil minister Rafael Ramirez.