Venezuela makes deals on oil projects

Several major oil companies reached agreements Monday with the leftist government of President Hugo Chavez of Venezuela over his plan to nationalize multibillion dollar projects in the Orinoco belt.

Exxon Mobil, the world’s largest oil company, has agreed to cede the Cerro Negro heavy oil project that it runs by May 1 in compliance with a decree, the Venezuelan energy minister said.

The minister, Rafael Ramirez, later said that Venezuela would compensate major oil companies in crude, instead of cash, in the nationalization of their multibillion dollar holdings in projects in the Orinoco reserve.
Venezuela also agreed to pay the equivalent of $250 million to BP and Total for the seizure of the Jusepin oil field last year.

“Those $250 million, we will not pay in cash, but rather we have a manner of arranging this with them that will not involve monetary effort,” Ramirez said without giving details.

International Herald Tribune