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Venezuela acting 'in good faith'



By Upstream staff 

Venezuela is acting in good faith as it seeks to reach a deal over compensation with ExxonMobil and ConocoPhillips following the renationalisation of their Orinoco belt assets, Venezuela's ambassador to the US Bernardo Alvarez said.

Successful talks will prevent the matter going to arbitration.

Alvarez, speaking during a goodwill trip to Texas, where both supermajors have their headquarters, said it was possible his country and the two US companies would end up on good terms.

"We have shown we are people of dialogue," Reuters quoted Alvarez as saying. "Nobody wants to go to arbitration."

ExxonMobil and ConocoPhillips quit their oil operations in Venezuela last month, after Venezuela's President Hugo Chavez decreed the giant Orinoco fields should be taken over.

The two companies can negotiate compensation from Venezuela for their lost operations. If talks fail, they can take their claims to international arbitration.

ConocoPhillips has said it expected to take a second-quarter charge of $4.5 billion for its Venezuelan interests, but added that the fair market value was more than that.

ExxonMobil said it had invested about $750 million in the Orinoco belt.

Alvarez would not predict when the issue will be resolved, but held out hope for a happy resolution.

"Maybe what you will see is a readjustment of the relationship. We need each other," he told reporters.

Alvarez is scheduled to make several public appearances in Houston today, Reuters said, including a speech to the Greater Houston Partnership, whose members includes many energy companies.


Wednesday, 11 July, 2007, 06:50 GMT  | last updated: Wednesday, 11 July, 2007, 07:39 GMT

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