US Energy Secretary: Co Litigation Over Venezuela Projs Likely

ConocoPhillips and Exxon Mobil Corp.likely will sue after abandoning their Orinoco oil projects under pressure from Venezuela, U.S. Energy Secretary Samuel Bodman said Wednesday.

Bodman also reiterated concerns that Venezuelan crude-oil shipments to the U.S. will be limited following the U.S. companies’ pullout.
The two companies refused to ink new agreements governing the projects, which produced heavy oil, a tar-like substance that requires extensive processing before it can be sent to refiners. This move means they are effectively exiting Venezuela. Other global energy majors accepted terms that required them to cede operating control and swallow a cut in their stakes.

“I presume it will lead to litigation,” Bodman told reporters following a speech.

Venezuela has confiscated the oil companies’ assets and hasn’t compensated them, he said.

“That’s a problem,” Bodman said. “I assume there will be litigation that will transpire.”

CNN