ESPACIO PUBLICITARIO
CARACAS, Thursday November 08, 2012 | Update
 
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HYDROCARBONS

Venezuela expects oil arbitrations in the second half of 2013

"We don't expect resolutions this year. Probably the biggest cases (Conoco and Exxon) will be resolved in the second half of 2013," Oil Minister Rafael Ramirez remarked

Exxon Mobil and ConocoPhillips seek USD 40 billion compensation from Venezuela (File photo)
EL UNIVERSAL
Thursday November 08, 2012  04:14 PM
Venezuela expects international arbitration rulings in the second half of 2013 in multi-billion-dollar claims by Exxon Mobil and ConocoPhillips over nationalization of their assets, Venezuela's Ministry of Petroleum and Mining Rafael Ramírez said.

Exxon Mobil and ConocoPhillips demand USD 40 billion in compensations from the Venezuelan Government, yet Venezuela looks forward to paying a small portion of it. 

Venezuela faces 20 cases filed with both the International Arbitration Court of the International Chamber of Commerce and The World Bank's International Centre for Settlement of Investment Disputes (Icsid), after it set off a wave of state takeovers.

"We don't expect resolutions this year. Probably the biggest cases (Conoco and Exxon) will be resolved in the second half of 2013," Oil Minister Rafael Ramírez remarked.

Venezuela's large number of compensation cases are being closely watched by the global oil industry as the imminent resolutions may set a precedent in future disputes involving producer states, which amid high oil prices lay down tougher conditions to foreign companies.

Industry analysts reckon Venezuela will end up paying USD 7-9 billion, which is less than what the companies expect, but more than what the Venezuelan Government seeks to pay (USD 2.5 billion). Analysts' estimates are based on the market value of the assets at the time of nationalization.

Translated by Jhean Cabrera
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What goes out of the La Yaguara industrial park

María Fernanda Astudillo is a store analyst for Alimentos Polar working at the company's facilities in La Yaguara. At only 23 years of age, she has made a career in that company where she has worked for the last six years. Now, besides her responsibilities, which include overseeing shipping/receiving and warehousing of goods, she is taking part in the roundtable discussions among the other companies operating in the La Yaguara industrial park, the Government and the workers exploring possible ways of coping with the order to expropriate the land.

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