abce certificate
Tuesday, 02 December, 2008, 04:20 GMT | more >>

ExxonMobil shrugs off Cerro Negro loss



By Upstream staff 

US supermajor ExxonMobil does not expect the loss of its stake in Venezuela's Cerro Negro heavy oil project to have any major effects on its operations or finances, it said today.

ExxonMobil's stake in project in the Orinoco heavy oil belt was taken over by Venezuelan state oil company PDVSA last week after the company failed to reach agreement with authorities over terms to retain a minority stake in the venture, Reuters reported.

PDVSA was granted majority stakes in several joint ventures with foreign oil players under a decree issued by Venezuelan President Hugo Chavez.

ConocoPhillips was also forced out of several of its projects in the country after it failed to reach a similar degree. UK supermajor BP, France's Total and Norway's Statoil reached agreements to allow them to maintain reduced stakes in several heavy oil ventures.

ExxonMobil said its net investment in Cerro Negro producing assets was about $750 million, less than 0.7% of its worldwide property, plant and equipment as of 31 March.

The company said it was still negotiating with Venezuela over compensation for its stake in the project.


Monday, 02 July, 2007, 21:25 GMT  | last updated: Monday, 02 July, 2007, 23:07 GMT

e-mail this article to a colleague


to email:  from:
comments: