Venezuela Chavez basks in needed glory of Exxon win

By Brian Ellsworth

CARACAS (Reuters) - Hundreds of oil workers cheered Venezuela's socialist President Hugo Chavez on Monday at a celebration of a legal victory over Exxon Mobil, a welcome respite to Chavez from other troubles including falling poll ratings.

In a ceremony that brought workers from across the OPEC nation to celebrate a British court's reversal of a $12 billion freeze on Venezuelan assets awarded to Exxon, a jovial Chavez described the win as historic.

"I feel like the manager of a great baseball team who, after being in the lowest categories you can imagine, suddenly our team is playing major league and beating the New York Yankees," he told the red-clad workers.

Baseball fan Chavez, who has enjoyed huge popularity with Venezuela's poor for his high social spending, is struggling to regain his momentum after losing a referendum on speeding up socialist reforms at the end of last year.

He has lurched from one issue to another this year, seeking to end economic problems like shortages of basic goods and high inflation while bickering with the conservative government in Colombia.

Last week a survey by polling company Datos showed previously rock solid support for the government had fallen to 35 percent, its lowest point since 2003.

The January court ruling that froze Venezuelan assets in the South American nation's fight with Exxon over compensation for a nationalized oil project was another blow.

Venezuela nationalized several foreign-controlled oil projects in the Orinoco oil belt last year.

Chavez has come to compensation agreements with most companies, but Exxon launched an international legal battle that went beyond an established arbitration process and sparked the wrath of the left-winger.

Chavez severed commercial ties with Exxon and threatened to stop exports of crude to the United States.

Last week's decision to lift the asset freeze was therefore met with elation by the government, which sees the ruling against America's biggest company as a blow to U.S. power.

"We are here to celebrate a great victory against imperialism, a moral and legal victory," Chavez said on Monday.

Political scientist Daniel Hellinger, of Webster University in St. Louis, said the London ruling was a much needed boost for Chavez.

"It's a huge victory for Venezuela and PDVSA," he said. PDVSA is Venezuela's state oil company. "(And) it's a welcome piece of good news for Chavez, who has not seen a lot lately."

A recent survey of 1,500 people distributed by the government showed high approval ratings for Chavez's performance in a summit of Latin American leaders that ended short-lived fears of war after a tense diplomatic spat between Andean nations.

(Reporting by Brian Ellsworth and Frank Jack Daniel; Writing by Frank Jack Daniel; Editing by Vicki Allen)