• Most Popular
  • Most Shared

UPDATE 2-Venezuela says all Chalmette oil sent to China

Fri Mar 28, 2008 5:55pm EDT

(Recasts, adds details, additional minister comment)

Stocks  |  Global Markets

CARACAS, March 28 (Reuters) - Venezuela is sending to China all the oil it previously shipped to a U.S. refinery jointly owned with Exxon Mobil amid a legal battle between the OPEC nation and the U.S. oil giant, Energy Minister Rafael Ramirez said on Friday.

"With respect to the shipments, we put them at China's disposal," Ramirez told reporters. "All of it."

Exxon and Venezuela have been in dispute over supplies to the Louisiana-based Chalmette refinery since Exxon won court orders freezing $12 billion in Venezuelan assets as part of a legal battle over compensation for Exxon assets Venezuela nationalized in 2007.

State oil company PDVSA halted supplies to Chalmette, a 50-50 joint venture that can process about 193,000 barrels per day of crude, after Exxon began rejecting some of the cargoes that Venezuela destined for the refinery.

Ramirez said PDVSA rerouted the supplies in protest, which he said were meant to pressure Venezuela as part of an international arbitration over the 2007 nationalization of the Cerro Negro heavy oil project that Exxon once ran.

Exxon wants at least $5 billion in compensation, though PDVSA says it is due less than $1 billion.

A London court this month lifted one of the freeze orders, though Exxon still has similar injunctions in Netherlands and Netherlands Antilles courts.

Venezuelan President Hugo Chavez is keen to export more oil to Asia to reduce traditional dependence on United States energy markets. (Reporting by Brian Ellsworth; Editing by David Gregorio)



More from Reuters

Joint Terminal Attack Controller SSgt Clinton J. Herbison, a U.S. Airman from the 817 Expeditionary Air Support Operations Squadron (EASOS) takes a break during a night mission near Honaker Miracle camp at the Pesh valley of Kunar Province August 12, 2009. Credit: REUTERS/Carlos Barria

Pictures of the Year

A look at the best photos of 2009.  Slideshow 

    The Dalai Lama jokes with a nasal spray after being asked his opinion on the swine flu during a press conference after his first lecture in Lausanne, Switzerland, August 4, 2009. REUTERS/ Valentin Flauraud

    What a wacky year it's been...

    Um, what's up the Dalai Lama's nose? "Oddly Enough" editor Bob Basler rounds up the goofiest photos of the year.  Full Article 

    A caution sign is seen next to a stock board at the Australian Securities Exchange (ASX) in Sydney September 5, 2008. REUTERS/Daniel Munoz
    Political Risk in 2010:

    Don't say we didn't warn you

    With the financial crisis (mostly) in the past, U.S. investors are eying a fresh start to the coming year. Here's a look at what speedbumps lie ahead.  Full Article